Why MOA & AOA Matter: Real Cases of Founders Losing Control
The Shocking Truth Most Founders Ignore
He had the majority shares, the idea, and the brand. Yet, he was thrown out of his own company.
It sounds impossible, right? But it happens more often than you think.
The silent assassin? Poorly drafted MOA & AOA.
A Real Founder Who Lost Control
Meet Rajat, a passionate founder from Delhi. In 2019, he co-founded a logistics tech startup with two friends. Rajat owned 60% equity. The startup raised funds, scaled operations, and hit ₹5 crore in revenue by 2022.
But behind all the success, one document was ticking like a time bomb.
The Articles of Association (AOA) Rajat signed at the time of incorporation had a clause that allowed investors to replace the director with a simple board majority.
When a new investor bought a 25% stake, they teamed up with the other co-founders and passed a resolution.
Just like that, Rajat was legally removed from his own company. His 60% equity meant nothing. His MOA & AOA were never customized. They were just standard templates.
What MOA & AOA Really Control
Most founders think:
“I’m the majority shareholder. I’m safe.”
But here’s the truth:
Equity is NOT control.
Control lies in governance documents—specifically, your MOA (Memorandum of Association) and AOA (Articles of Association).
These documents define:
Who has voting power
How directors are appointed/removed
How major decisions are made
What rights founders and investors hold
One wrong clause can legally destroy your authority, even if you hold 99% of the shares.
Customized Legal Documents
Here’s the good news:
This whole nightmare is 100% preventable.
All you need is a professionally drafted MOA & AOA tailored to your needs.
At Legal Suvidha, we create startup-specific documents that:
✅ Give you board control
✅ Limit powers of new investors
✅ Include veto rights
✅ Restrict hostile takeovers
✅ Protect your role as founder-director
No more free templates.
No more “copy-paste” mistakes.
Just bulletproof legal drafting that actually works in real life.
Legal Suvidha’s Founder-First Protection
Rajat came to us too late.
But you still have time.
Legal Suvidha isn’t just a document-filing service. We’re your legal growth partner. We understand:
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Founder-investor tensions
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Legal strategies for power protection
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How to future-proof your MOA & AOA
With our support, hundreds of founders have secured their positions—even during funding rounds and leadership changes.
We don’t just file your company.
We fortify it.
Two Choices That Shape Your Startup’s Future
❌ Option 1: Do nothing. Keep using that downloaded MOA & AOA.
And when things go wrong, don’t say you weren’t warned.
✅ Option 2:
Let Legal Suvidha review or draft your MOA & AOA the right way.
Act now—because once you lose control, you may never get it back.
👉 Click here to book your free call now.
📱 Phone: 8130645164
📧 Email: [email protected]
🌐 Website: www.legalsuvidha.com
Time is ticking. The choice is yours.
