One of the important documents that is needed to start a company is a Memorandum of Incorporation ( MOI ). This document will entitle you to a certificate that can serve as proof that you have registered your business.
The Memorandum of Incorporation ( MOI ) is the sole governing document of a company in South Africa. With the new Companies Act of 2008, there is no longer a need both the Memorandum of Incorporation ( MOI ) and the Articles of Associations. There is some of the same information mentioned in both of these documents, making them quite easy to merge.
There have also come more flexibility with the management of companies. The internal affairs have also become more flexible and easier to manage since the new Act was written into law. The Act also makes provision for a change in the structure of their shares. This gives the company the freedom to freely choose in which manner they would like to raise capital for the company.
The most important aspect of the Memorandum of Incorporation ( MOI ) is that it must be drawn up in accordance with the new Companies Act. When the Memorandum of Incorporation ( MOI ) is not drawn up in accordance with the Act, the whole document is in the void and not valid for the Company. This will also have to effect that the Company will not be issued with a registration certificate, meaning that they will not be able to start doing business.
If you need help with setting up your Memorandum of Incorporation ( MOI ) we will be able to assist.
The Act makes provision for certain clauses that can be included in the Memorandum of Incorporation ( MOI ) not have been mentioned in the Act. There can also be special conditions mentioned or certain conditions that apply to the specific company.
The Memorandum of Incorporation ( MOI ) focus mainly on the business activities of the company, the power if the directors, the board committees, power of the shareholders of the company and the procedures that have to be followed in order to make changes to a current Memorandum of Incorporation ( MOI ). The Companies Act makes use of two types of Memorandum of Incorporations ( MOI ). One that is shorter and more to the point and a longer and more detailed one. These specifications are determined by the type of company that you are starting, so be sure to know which one is applicable to your company. Pty Company Registration will be able to assist you in this matter. They are Company Registration pros and have helped thousands of people to have their companies registered.
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The Act makes provisions for certain default rules to apply to a company. These rules can however be altered and varied by the Company if they so choose. This all is part of how flexible the new Act really is. These rules are things like formalities for convening board meetings and the period of notice before such a meeting. There are however certain core company rules and regulations that are mandatory for all companies to comply to. These rules include things like the duties of the directors and doing a solvency or liquidity test. The Company should remember that if they do not make amendments to the parts of the Act that they can, the defaults that the law prescribes will be applicable to them.
The Memorandum of Incorporation ( MOI ) is a vital part of registering your company. This will be one of the most important document of your company, so be sure that it is drawn up as correct as possible and in a professional manner.