Distinguish between Memorandum and Articles of Association.

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Solution

Memorandum of Association is the charter of company indicating fundamental objects for which the company is formed while articles specify rules and regulations for the internal management of a company. Memorandum defines the relationship between the company and outsider whereas articles defines the relations between the company and its members. Any act beyond the scope of memorandum is void and cannot be ratified while work beyond the scope of articles can be ratified.

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