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Saturday, 11 June 2011

Difference or Distinction between Memorandum of Association and Article of Association

1. IMPORTANCE :-
Memorandum of Association : It has primary importance in the formation of company.
Article of Association : It has a secondary importance in the formation of company.

2. CONSTITUTION :-
Memorandum of Association : It is a constitution of the company.
Article of Association : It contains rules which govern the administration of the company.

3. OBJECTS :-
Memorandum of Association : It lays down the objects of the company.
Article of Association : It contains the procedure of achieving objects. The provision can be changed by the special resolution easily.

4. ALTERNATE :-
Memorandum of Association : It is not alterable but it can be amended by special resolution and sanction of the court or central Govt.
Article of Association : Article of association can be alternate by a special resolution.

5. RELATION :-
Memorandum of Association : Its nature is like the contract between the company and outsiders like bankers and creditors.
Article of Association : It maintains relation between the company and the persons inside the company.

6. REGULATION :-
Memorandum of Association : It contains rules which governs the administration of the company.
Article of Association : The registration of articles is optional for the company limited by shares. It may adopt all or any of regulation.

7. NATURE OF DOCUMENT :-
Memorandum of Association : It does not allow the company to act against the company ordinance.
Article of Association : It is a subsidiary document to Memorandum Association.

8. LIMITS :-
Memorandum of Association : This documents determines the limits of the company business.
Article of Association : Business limits are not mentioned in it.

5 comments:

Sylvester Vaz 28 June 2013 at 21:09  

Thanx a lot!!! Points are Very well put down :)

Sylvester Vaz 28 June 2013 at 21:11  

Thanx a lot!!! Points are explained well in detail :)

kelvin okoise 4 August 2013 at 12:21  

Tnx i tink its gona help

Sylvester Vaz 11 August 2013 at 08:40  

keep up da gud work!!! god bless :)

Anonymous,  1 December 2014 at 02:56  

good one!!!!!!!!!!!!

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