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MEMORANDUM OF ASSOCIATION
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ARTICLES OF ASSOCIATION
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Meaning
It is a fundamental document which lays down the
objectives of the company. It regarded as the constitution or charter of the
company.
Establishment of
relationship
It defines the relationship between company and
outsiders.
Purpose
The
main purpose is to define limits or the scope of the company’s activities.
Ease in Alteration
It is not so easy to alter memorandum.
Obligation
Every company has to prepare its memorandum &
register it with the register of companies.
Contents
It contains six clauses such as name clause,
Domicile clause, objective clause, liability clause and association clause.
Status
The
Memorandum is the fundamental document required for the formation of the
company.
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Meaning
It is subordinate document which provides rules to
achieve the objectives. It is regarded as the rules and regulations for
internal working of the company.
Establishment of relationship
It defines the relationship between company &
its shareholders/Directors.
Purpose
The
main purpose is to provide directions for the internal management of the
company
Ease in Alteration
It is convenient to alter articles.
Obligation
A Public company limited by shares need not to
register its Articles and as such can adopt Table A in place of its Articles.
Contents
It contains rules and regarding internal
management of the company. Such as rules regarding meeting, appointment of
directors, issue of shares etc…
Status
The
Articles is subordinate to memorandum which is required for the formation of
the company.
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MEMORANDUM OF ASSOCIATION V/S ARTICLES OF ASSOCIATION
