Difference between Memorandum of Association and Articles of Association

The documents or statutes are the basic components of the companies, since they give details about the vision, products or services, a team of the company. All companies make sure that these documents, which have basic or general information about the company. There are two basic documents that a company possesses that they can differentiate based on their need at the time of registration. The Deed of Incorporation and the Articles of Association are two of the company documents, which differ in their requirement at the time of registration. The Memorandum of Association, abbreviated as MOA, is the document that contains the fundamental information about the company; it is mandatory to present it to the authorities at the time of registration. On the contrary, the Articles of Association, abbreviated as AOA,

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What is the Memorandum of Association?

The deed of incorporation is the document that contains essential information about the company. This memorandum is so essential that without the availability and presence of this document, the company cannot register. It should be noted here that it is the public document, which anyone can see in the ‘about’ or ‘general information’ section of the company. In other words, we can say that this is one of the essential documents that is required at the time of incorporation and also gives knowledge about the company to someone interested in dealing with them. The MOA contains information such as the name of the company, the location of the company located, the objectives and products of the company, the total capital owned by the company, the details of the subscribers of the company, and information on the responsibilities of the members of the company. It is mandatory for companies to have six clauses containing the above information about the company. If any of the changes or adjustments are made in this document, the special resolution will be approved at the General Shareholders’ Meeting (AGM) and at that time it is mandatory to present the prior approval of the Company Law Council or the Central Government. The other name of the memorandum of association is the company statute. the special resolution must be approved at the General Meeting of Shareholders (AGM) and at that time it is mandatory to present the prior approval of the Company Law Board or the Central Government. The other name of the memorandum of association is the company statute. the special resolution must be approved at the General Meeting of Shareholders (AGM) and at that time it is mandatory to present the prior approval of the Company Law Board or the Central Government. The other name of the memorandum of association is the company statute.

What are the social statutes?

The article of association is the document that contains the information about the established rules and regulations of the company. These rules and regulations are never intended for the public; the main function of this document is to oblige the members to follow the mentioned rules and to regulate the relationship between the company and its members. This document is drafted purely at the choice of the company. If you wish to make any changes to this document, you can do so by passing the special resolution at the Annual General Meeting (AGM). As for the state, the articles of association are the subordinate of the articles of incorporation. There is no requirement of this article at the time of incorporation of the company.

Memorandum of Association vs. Articles of Association

1. The Memorandum of Association is abbreviated as MOA while the Article of Association is abbreviated as AOA.
2. The deed of incorporation is the document that contains the general information of the company. Contrary to this, the bylaws is the document that contains the rules and regulations of the company.
3. The deed of incorporation is the public document while the statute of association is only for the members of the company.
4. A memorandum of association is required at the time of company incorporation. On the other hand, no articles of incorporation are required for the incorporation process.
5. The modification or revision in the MOA can be made after passing the special resolution in the annual general assembly and within all that, the prior approval of the Central Government is also presented. On the contrary, the alterations in the statutes are made simply by passing the special resolution in the annual general meeting.