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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CEO of DoBiz India. DoBiz India is an India’s leading online one stop business services provider, whose key focus areas are company registration, trademark filing, business compliances, copyright, tax compliance and legal documentation.