Explain the difference between Memorandum of Association and Articles of Association on any five bases.
Explain the difference between Memorandum of Association and Articles of Association on any five bases.
Following are the differences between MoA and AoA:
1. Nature: MoA is the charter of a company indicating the objects and conditions on which the company is granted incorporation. It defines the nature of the business and capital structure of the company. On the other hand, AoA specifies rules and regulations of the company which are observed in conducting its internal affairs.
2. Contents: Contents of MoA specify areas of operations of the company beyond which it cannot go. Contents of AoA deal with internal matters, laws and by-laws of the company.
3. Relationships defined: MoA defines external relationships, i.e., the relationship between the company and the outsiders. AoA defines internal relationships, i.e., the relationship between the company and its members.
4. Status: MoA, being the charter or constitution of the company, is subordination to both the Companies Act and MoA.
5. Violation: Any act of the company in violation of MoA is ultra vires and void even if all members of the company ratify it. Any act of the company in violation of the AOA can be ratified by the majority of members of the company.
Following are the differences between MoA and AoA:
1. Nature: MoA is the charter of a company indicating the objects and conditions on which the company is granted incorporation. It defines the nature of the business and capital structure of the company. On the other hand, AoA specifies rules and regulations of the company which are observed in conducting its internal affairs.
2. Contents: Contents of MoA specify areas of operations of the company beyond which it cannot go. Contents of AoA deal with internal matters, laws and by-laws of the company.
3. Relationships defined: MoA defines external relationships, i.e., the relationship between the company and the outsiders. AoA defines internal relationships, i.e., the relationship between the company and its members.
4. Status: MoA, being the charter or constitution of the company, is subordination to both the Companies Act and MoA.
5. Violation: Any act of the company in violation of MoA is ultra vires and void even if all members of the company ratify it. Any act of the company in violation of the AOA can be ratified by the majority of members of the company.
