If circumstances take place in such a way that a change of the company’s MOA is required, it can be altered but only by way of a special resolution. The alteration will be a part of the original MOA and therefore the company’s constitution from the date of the passing of the special resolution.
The company will then be required to submit a notice of the resolution or any court order that has direct relevance to the constitution within a period of 14 days of such resolution of the order to the Accounting and Corporate Regulatory Authority (ACRA). Once this has been done, ACRA will issue a certificate of incorporation which serves as a confirmation of the alteration.
Any business entity which has been established by one or more entrepreneurs must comply with the contents which have been stated in its memorandum of association. A company’s MOA in Singapore should be able to be accessed on its official website.
When the company is being established, the owners must audibly read the MOA at least once. While doing so, they must specify the following information:
There are also many other rules which must be followed by a Singaporean company. These rules are usually mentioned in the company’s constitution.
Memorandums of Association in Singapore provide many different benefits to companies.
1. Clarity over identity of company
For example, the MOA will include certain information about how the company name was selected. Therefore, this prevents people from becoming confused by or misled about the purpose of the company through its name.
2. Prevent shareholder dispute over shareholding
The rules regarding shareholders and their shares are also defined in the MOA. Therefore, when there is a problem related to the shareholders, the MOA can be used to solve it. In this way, no issue that occurs in the company which concerns its shares will ever remain unsolved.
3. Details appointment, liabilities and responsibilities of directors
Another benefit relates to the appointment of the directors and commissioners. The MOA defines how many directors and commissioners must be in a company, their minimum age, and their liabilities. Whenever one or more directors show negligence towards their responsibilities, then the director can be dismissed upon the request of the members of the board of directors in accordance with the company’s MOA.
Therefore, many problems can be solved if the company’s MOA is properly followed. This shows just how truly important an MOA is to any company based in Singapore.
As such, it is extremely important for companies to have a local company secretary advising them of proper regulations.