Question

State the following statement is True or False:

A subordinate document to the Memorandum of Association is the Articles of Association.

• A. True
• B. False

Answer 1

The correct option is A True

True

Memorandum of Association (MOA) is the main, compulsory document required for the incorporation of the company. It must be registered with the ROC (Registrar of Companies) at the time of incorporation. It lays down the objects, scope, powers and area of operation of the company, all of which the company can’t transgress. Thus, it lays down it’s the limits of the company.

Articles of Association (AOA) is a secondary document that is constituted only after the MOA. It lays down the rules and regulations for the administration and management of the company. The Articles lay down the right, responsibilities, powers, duties, etc of the members along with information regarding the accounts and audit of the company.

It follows the MOA and can’t contradict it. It is easier to amend than MOA which can be done without any restrictions. It can be amended retrospectively in the Annual General Meeting as per the choice of the company.