Custom Memorandum of Incorporation
A Memorandum of Incorporation (MOI) is the primary constitutional document of a company and sets out the rights, obligations and responsibilities of directors, shareholders and others within a company.
R7,200.00 inc. VAT
| Fit For | All South African private companies |
|---|---|
| Customised | Yes, to the needs of your company |
| Attorney | Drafted by an Attorney of at least 12 years post qualification experience |
Common benefits of a Memorandum of Incorporation
- It sets out clear contractual obligations and rights of shareholders, directors and the company of the company
- Can amend certain aspects such as voting thresholds to favour parties
- Allows the customization of the alterable provisions contained in the Companies Act, 2008
- Can place certain restrictions of powers on the board of directors
- As the primary governing document of the company, it is the main mechanism for ensuring the continued existence of the company.
- Goes a long way to decreasing the legal and commercial risks associated with a company
FAQ's regarding Memorandum's of Incorporation
How does it relate to and fit in with a Shareholders Agreement?
Since May 2011, with the enactment of the new Companies Act (2008) the position changed, somewhat. The Memorandum of Incorporation, as read with the Act, became the supreme governing document for all private companies with the effect that shareholders agreements which were inconsistent with the Memorandum of Incorporation of the company were void, to the extent of their inconsistency.
Do I get a standard Memorandum of Incorporation when registering a company?
Yes, all companies receive a standard MOI on registering their company, but which MOI only sets out the very basics of what an MOI should contain.
When is a custom Memorandum of Incorporation necessary?
Where a company wishes to take advantage of these alterable provisions, a custom Memorandum of Incorporation is necessary. Although a public document, since the Memorandum of Incorporation is filed with the CIPC after being adopted by special resolution, the Memorandum of Incorporation is the perfect place to regulate all aspects of the company, and to the greatest extent possible, to minimise the regulatory burden on a company.