When someone found a company two important documents Memorandum of Association and Articles of Association are always there. Have a look 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||Memorandum of Association (MOA) is a document that contains all the fundamental data which are required for the company incorporation.||Articles of Association (AOA) is a document containing all the rules and regulations that governs 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 powers and constraints of the organization.||The articles demonstrate obligations, rights and powers of individuals, who are 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 decision of the Company.|
|Objectives||The memorandum contains the objectives and powers of the company.||The articles provide the regulations by which those objectives and powers are to be conveyed into impact.|
|Validity||The memorandum is the dominant instrument and controls articles.||Any provision, as opposed to memorandum of association, is invalid.|
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