When a company is incorporated, two important documents, a Memorandum of Association and Articles of Association, are always present. Have a look at MOA vs. AOA!
Difference between MOA and AOA
The fundamental points of distinction between MOA and AOA are as follows:
| BASIS FOR COMPARISON | MEMORANDUM OF ASSOCIATION | ARTICLES OF ASSOCIATION |
| Definition | A Memorandum of Association (MOA) is a document that contains all the fundamental data required for the company incorporation. | An Articles of Association (AOA) is a document containing all the rules and regulations that govern the company |
| Registration | MOA must be registered at the time of incorporation. | The articles may or may not be registered. |
| Scope | The Memorandum is the charter, which characterizes and limits the powers and constraints of the organization. | The articles demonstrate the obligations, rights, and powers of individuals endowed with the responsibility of running the organization and administration. |
| Status | Supreme document. | It is subordinate to the memorandum. |
| Power | The memorandum cannot give the company power to do anything opposed to the provision of the companies act. | The articles are constrained by the act, but they are also subsidiary to the memorandum and cannot exceed the powers contained therein. |
| Contents | A memorandum must contain six clauses. | The articles can be drafted according to the company’s decision. |
| Objectives | The memorandum contains the objectives and powers of the company. | The articles provide the regulations by which those objectives and powers will be conveyed into impact. |
| Validity | The memorandum is the dominant instrument and controls articles. | Any provision, as opposed to a memorandum of association, is invalid. |
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