When someone found a company two important documents Memorandum of Association and Articles of Association are always there. Have a look MOA vs AOA!

Memorandum of Association - MOA
Business Women Photo from Shutterstock

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.

 

We believe this content will be useful for you.

Recommended Readings-