The objects clause in a company’s memorandum of association states the reasons why the company is formed and the range of economic activities the business is carried on. As per UAE Commercial Companies Law, an objects clause describes the power or capacity of a business to act. In order to avoid potential issues down the line, long and unwieldy objects clauses are drafted in order to include as much business activities as possible, thus avoiding dealings that will be considered as ultra vires.
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Memorandum of Association of real estate company and construction companies includes the following in objects clause:
- To acquire through lease exchange, reclamation, hire, purchase, or otherwise, as well as make advances with regards to the security of, as well as deal with traffic in buildings, lands, and hereditaments of tenure or description including any rights, estate, interest, or easements or connected therewith, and to turn and develop the same into account as may appear expedient, including in particular through the laying out and preparation of land for development purposes and working on building sites through the use of surveying planning, paving, levelling, planting, cultivating, forming, and draining land, appropriating and converting any such land to and for grounds, squares, road streets, gardens, as well as other conveniences and through construction, pulling down, re-constructing, improving, altering, furnishing, marinating, controlling, administering, managing, and holding offices, theaters, motels, hotels, markets, swimming pools, wharves, buildings, water works, ships, warehouses, colonies, factories, bungalows, houses, flats, and other works, conveniences and structures of all types for commercial, residential, industrial, or public purposes through letting, leasing (on building agreements or otherwise), sale (through installments or otherwise), as well as otherwise disposing of such to carry on business as promoters, developers, builders, contractors, and constructors.
- To purchase, take on lease, acquire, or in exchange/any other lawful way any land, area, structure, building and to make the same to account, prepare the same, as well as dispose of or make an effort in maintaining the same, as well as to build markets, townships and other buildings commercial and residential or conveniences thereon, including to equip such or part of them with any or all conveniences or amenities, drainage facility, television, telephonic, electric installations, and for dealing with such in all manners whatsoever, and through advancing money entering into agreements or arrangements of different kinds with tenants, builders, and others.
- To erect, construct, repair, maintain, cement, macadamize, pave, curve, grades, improve, develop, demolish, and remodel buildings, houses, pavements, alleys, courts, sideways, streets, paths, roads, highways, places of worship such as temples and churches, schools and other educational institutions, hospitals and clinics, apartments, and structures, and to perform other similar construction, paving, or levelling work, and for purposes to take on lease, purchase, or otherwise acquire or hold any lands, then prepare layout thereon and building of tenure description wherever they’re situated or interests or rights therein and connected therewith.
- To purchase and acquire houses, building, lands, and hereditaments referred to as estate known as estate and otherwise at estates within the country, as well as to acquire through exchange, purchase, or otherwise for and estate in fees or for a less estate, either reversionary or immediate, and whether contingent or vested, any other hereditaments of tenure, land, tenements, whether subject or not to cumbrances or charges and to sell or to hold, mortgage, let alienate, charge, and/or otherwise handle with all or such lands, hereditaments, or tenements.
- To construct, maintain, develop, and erect, either by company or through other parties, streets, roads, sewers, shops, flats, houses, building, brick kilns and the works, gasworks, tramways, and any other work, erections as well as things of different descriptions whatsoever either upon lands that are purchased or leased by the company itself or upon any other land, and generally to improve and alter the lands and all other properties of the company.
- To advance or lend money to a builder and any other person on securities of any description, either personal or real and to grant cash loans upon the mortgage of hereditaments of tenure, buildings, and lands, for improvement or otherwise, and to carry on business of surveyors, lime burners, tile and brick makers, builders, architects, estate and housing agents, and contractors.
- To carry on business as a developer and for the purchase to acquire, buy, lease, sell, acquire, re-sell, or to traffic in estates and land structures other immovable properties, as well as to develop housing schemes, cooperatives, township, and prepare building sites, erecting, reconstructing, constructing, improving, altering, developing, enlarging, furnishing, and decorating hotels, buildings, houses, resorts, motels, factories, flats, offices, shops, warehouses, garages, hospitals, workshops, palaces, theaters, halls, clinics, and nursing homes.
Read also: Difference Between Memorandum Of Association And Articles Of Association
Take note: in order to ensure the validity of a memorandum of association Dubai, UAE, the signing of the signatories must be done in the midst of a public notary in Dubai. Call us today here in Notary Public Dubai for more information!
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