Question

Distinguish between Memorandum of Association and article of association on the basis of objective, position, relationship, validity and necessity.

Answer 1

$\begin{array}{ccc}\text{BASIS OF}& \text{MEMORANDUM OF ASSOCIATION}& \text{ARTICLE OF ASSOCIATION}\\ \text{OBJECTIVES}& \text{Memorandum of Association defines}& \text{Articles of Association are}\\ & \text{the objects for which rules of internal}& \text{management of the}\\ & \text{the company is formed.}& \text{company. They indicate}\\ & & \text{how the objectives of the}\\ & & \text{company are to be achieved}\\ \text{POSITION}& \text{This is the main document}& \text{This is a subsidiary document and is}\\ & \text{of the company and is}& \text{subordinate to both the}\\ & \text{subordinate to the}& \text{Memorandum of}\\ & \text{Companies Act.}& \text{Association and the Companies Act.}\\ \text{RELATIONSHIP}& \text{Memorandum of Association}& \text{Articles define the relationship of the}\\ & \text{defines the relationship of}& \text{members and the}\\ & \text{the company with outsiders.}& \text{company}\\ \text{VALIDITY}& \text{Acts beyond the}& \text{Acts which are beyond Articles can}\\ & \text{Memorandum of Association are}& \text{be ratified by members, provided}\\ & \text{invalid and connot be the}& \text{they do not violate the}\\ & \text{vote of the members.}& \\ \text{NECESSITY}& \text{Every company has to file a}& \text{it is not compulsory for a public ltd.}\\ & \text{Memorandum of Association.}& \text{company to file}\\ & & \text{Articles of Association. It}\\ & & \text{may adopt Table F of the}\\ & & \text{companies Act, 2013}\end{array}$