ADVERTISEMENTS:

Memorandum of Association and Articles of Association

Memorandum of Association

Scope

The memorandum is a sort of constitution of the company. The company works in the frame work given in the memorandum.

Necessity

The memorandum is a must for getting a company registered.

Provisions

The memorandum cannot contain anything contrary to Companies Act.

Limitation

A company cannot do anything beyond the scope of the memorandum. Any act beyond its scope will be void.

holomove-memorandum-lg.jpg

Image Source: publishyourarticles.net/wp-content/uploads/2015/06/holomove-memorandum-lg.jpg

Relationship

ADVERTISEMENTS:

It regulates the relationship between company and the members of the public.

Alteration

Memorandum can be altered only under special circumstances and involves many formalities.

Articles of Association

Scope

The articles contain bye-laws for the day-to-day working of the company. Articles are framed in the orbit of the memorandum of association.

Necessity

ADVERTISEMENTS:

Public companies may not have their own articles, but can adopt Table A Schedule 1 as its articles. Private companies, companies limited by guarantee and unlimited companies must have their own articles.

Provision

The articles of association are subordinate to the memorandum and Companies Act and cannot contain anything contrary to both.

Limitation

Anything done beyond the scope of the articles will not be void and it can be ratified by passing a special resolution.

Relationship

ADVERTISEMENTS:



It defines relationship between company and the members and among members themselves.

Alteration

Alternation of articles is not difficult. It can be altered by passing a special resolution

Kata Mutiara Kata Kata Mutiara Kata Kata Lucu Kata Mutiara Makanan Sehat Resep Masakan Kata Motivasi obat perangsang wanita