| MEMORANDUM OF ASSOCIATION | ARTICLES OF ASSOCIATION |
| Meaning It is a fundamental document which lays down the objectives of the company. It regarded as the constitution or charter of the company. Establishment of relationship It defines the relationship between company and outsiders. Purpose The main purpose is to define limits or the scope of the company’s activities. Ease in Alteration It is not so easy to alter memorandum. Obligation Every company has to prepare its memorandum & register it with the register of companies. Contents It contains six clauses such as name clause, Domicile clause, objective clause, liability clause and association clause. Status The Memorandum is the fundamental document required for the formation of the company. | Meaning It is subordinate document which provides rules to achieve the objectives. It is regarded as the rules and regulations for internal working of the company. Establishment of relationship It defines the relationship between company & its shareholders/Directors. Purpose The main purpose is to provide directions for the internal management of the company Ease in Alteration It is convenient to alter articles. Obligation A Public company limited by shares need not to register its Articles and as such can adopt Table A in place of its Articles. Contents It contains rules and regarding internal management of the company. Such as rules regarding meeting, appointment of directors, issue of shares etc… Status The Articles is subordinate to memorandum which is required for the formation of the company. |
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