The Total solution for NCERT class 6-12
Basis of Comparison
(MoA)Memorandum of Association
Articles of Association (AoA)
Meaning
It is a document that contain all essential information required for company incorporation.
It is a document containing the rules and regulations of the company.
Objectives
Defines scope of activities and character of the company
It defines rules and regulations of the company.
Position
Serves as the main document of the company and is subordinate to Companies Act
A subsidiary document that is subordinate both to MoA and Companies Act
Relationship
Defines the relation between outsiders and the company
Defines relation between company and its members
Validity
Acts that are beyond MoA cannot be ratified
Acts that are beyond AoA can be ratified, if it does not violate MoA rules.
Necessity
Must for every company
Not that important
Alteration
A statutory authority approval is necessary for altering MoA.
Articles can be altered by passing a special resolution by the members.