In this article we will discuss about Memorandum of association and Article of Association and also discuss Difference between Memorandum of Association and Article of Association .
Memorandum is the document of the company which contains all the information regarding company, its power and also known as company foundation. It is defined under section 2 (56) under companies act. It contains name, registered office, objects and company capital as well as limit of liabilities of the members of the company.
A Memorandum is signed by the company members and required for registration of company to its registrar. It has wider scope than article of association and compulsory document to business organization.
Article of Association
Article of association is the document of a company maintains by itself and it contains rules and regulations of the company. An article of Association is shortly known as AOA. It is defined under section 2(5) of companies act.
Articles of association are not compulsory document to the company but it is subsidiary document which contain rules of the company. It contains company internal affairs and management and registration is not compulsory.
Difference between Memorandum of Association and Article of Association
|Basis for Comparison||Memorandum of Association||Articles of Association|
|Meaning||Memorandum is the document of the company which contain all the information regarding company and also known as company foundation||It refers to document which contain rules and regulations of the company.|
|Defined under||Sec 2 (56)||Sec 2 (5)|
|Registration||Compulsory at the time of incorporation||Registration is not compulsory it may be or not.|
|Requirement||Compulsory document||Subsidiary document|
|Information contained||Power and objectives||Rules of the company|
|Contents||Six contents||It’s depends on company|
|Scope||It has wider scope||It has less scope than MOA|
So we have discussed the Difference between Memorandum of Association and Article of Association. If you have any query please let us know in the comments section below.