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.