Question

Distinguish between 'Memorandum of Association' and 'Articles of Association.'

Answer 1

Difference between Memorandum of Association and Article of Association

$\begin{array}{ccc}\text{Basis}& \text{Memorandum}& \text{Articles of}\\ & \text{of Association}& \text{Association}\\ \text{Objective}& \text{Memorandum of}& \text{Articles of}\\ & \text{association}& \text{association are rules}\\ & \text{defines the}& \text{of internal}\\ & \text{objects for which}& \text{management of the}\\ & \text{the company is}& \text{company. They}\\ & \text{formed.}& \text{indicate how the}\\ & & \text{objectives of the}\\ & & \text{company are to be}\\ & & \text{achieved.}\\ \text{Position}& \text{This is the main}& \text{this is a subsidiary}\\ & \text{document of the}& \text{document and is}\\ & \text{company and is}& \text{subordinate to both}\\ & \text{subordinate to}& \text{the memorandum of}\\ & \text{the companies}& \text{Association and the}\\ & \text{Act.}& \text{Companies Act.}\\ \text{Relationship}& \text{Memorandum of}& \text{Articles define the}\\ & \text{association}& \text{relatonship of the}\\ & \text{defines the}& \text{members and the}\\ & \text{relationship of}& \text{company.}\\ & \text{the company with}& \\ & \text{outsiders.}& \\ \text{Validity}& \text{Acts beyond the}& \text{Acts which are}\\ & \text{memorandum of}& \text{beyond articles can}\\ & \text{association are}& \text{be ratified by the}\\ & \text{invalid and}& \text{members, provided}\\ & \text{cannot be ratified}& \text{they do not violate}\\ & \text{even by a}& \text{the memorandum.}\\ & \text{unanimous vote}& \\ & \text{of the members.}& \\ \text{Necessity}& \text{Every company}& \text{It is not compulsory}\\ & \text{has to file a}& \text{for a public limited}\\ & \text{memorandum of}& \text{company to file}\\ & \text{association.}& \text{articles of}\\ & & \text{articles of}\\ & & \text{adopt table A of the}\\ & & \text{Companies Act.}\\ \text{Alteration}& \text{Alteration of}& \text{Articles can be}\\ & \text{memorandum of}& \text{altered by passing a}\\ & \text{association is}& \text{special resolution by}\\ & \text{quite difficult and}& \text{the members}.\\ & \text{in many cases},& \\ & \text{approval of}& \\ & \text{certain statutory}& \\ & \text{authority is}& \\ & \text{required.}& \end{array}$