{"id":40818,"date":"2022-03-04T11:27:13","date_gmt":"2022-03-04T05:57:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=40818"},"modified":"2024-02-29T14:48:38","modified_gmt":"2024-02-29T09:18:38","slug":"between-memorandum-of-association-and-articles-of-association","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/","title":{"rendered":"Know the difference between Memorandum of association and articles of association"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Memorandum of association and\narticles of association serves as charter documentation for establishing the\ncompany and its undertaking thereon. Memorandum of association is an\nabbreviated term for MoA, which is the fundamental document of the company,\nwhich entails all the key particulars of the company. Meanwhile, the Articles\nof Association is an abbreviation for AOA. It refers to a document that\nencloses all the rules and norms drafted by the company. <\/p>\n\n\n\n<p>While the MoA lays out the constitution\nof the company and so it is the foundation on which the company is built.\nAlternatively, AoA encloses by-laws that regulate the company&#8217;s internal\naffairs and its code of conduct. <\/p>\n\n\n\n<p>Both <a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\"><strong>Memorandum of association<\/strong><\/a> and articles of association seek registration with the RoC, i.e. Registrar of Companies, when the company undergoes the incorporation process. <\/p>\n\n\n\n<p>To further understand the fundamental difference between the Memorandum of association (MOA) and articles of association (AOA), keep reading this article. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/#Comparison_Chart_MoA_Vs_AoA\" >Comparison Chart : MoA Vs AoA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/#Definition_of_Memorandum_of_Association\" >Definition of Memorandum of Association<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/#Definition_of_Articles_of_Association\" >Definition of Articles of Association<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/#Key_Difference_Between_MOA_and_AOA\" >Key Difference Between MOA and AOA&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/between-memorandum-of-association-and-articles-of-association\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparison_Chart_MoA_Vs_AoA\"><\/span>Comparison Chart : MoA Vs AoA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Grounds FOR COMPARISON<\/strong>\n  <\/td><td>\n  <strong>MEMORANDUM OF ASSOCIATION (Moa)<\/strong>\n  <\/td><td>\n  <strong>ARTICLES OF ASSOCIATION (Aoa) <\/strong>\n  <\/td><\/tr><tr><td>\n  Meaning\n  <\/td><td>\n  Memorandum of Association refers to a\n  charter document that encloses key detail which is necessary for company\u2019s\n  incorporation. \n  <\/td><td>\n  Articles of Association refer to\n  documents that contain all the norms and rules that regulate the company. \n  <\/td><\/tr><tr><td>\n  Type of Information \n  <\/td><td>\n  Objects and Powers of the Company\n  <\/td><td>\n  Rules of the company.\n  <\/td><\/tr><tr><td>\n  Status\n  <\/td><td>\n  It is subordinate to the governing Act.\n  <\/td><td>\n  It is subordinate to the MoA.\n  <\/td><\/tr><tr><td>\n  Retrospective Effect\n  <\/td><td>\n  The memorandum of association (MoA)\n  cannot be amended retrospectively.\n  <\/td><td>\n  The articles of association (AoA) can\n  be amended retrospectively.\n  <\/td><\/tr><tr><td>\n  Fundamental contents\n  <\/td><td>\n  A memorandum has six fundamental\n  clauses.\n  <\/td><td>\n  The articles can be prepared as per\n  the company\u2019s requirement\n  <\/td><\/tr><tr><td>\n  Obligatory\n  <\/td><td>\n  Yes, for all companies.\n  <\/td><td>\n  Only a private limited company is\n  required to draft its articles while a public limited company limited by\n  shares can opt for Table F in place of articles.\n  <\/td><\/tr><tr><td>\n  Mandatory filing at the instance of\n  registration\n  <\/td><td>\n  Required\n  <\/td><td>\n  Not required \n  <\/td><\/tr><tr><td>\n  Alteration\n  <\/td><td>\n  Can be subjected to alteration after\n  passing special resolution in AGM and prior consent of Central Government or\n  Company Law Board is imperative. \n  <\/td><td>\n  Alteration is allowed by passing\n  Special resolution in AGM\n  <\/td><\/tr><tr><td>\n  Relation\n  <\/td><td>\n  Specifies the interplay between\n  company and third-party \n  <\/td><td>\n  Governs the interplay between company\n  and its members &amp; also among the members. \n  <\/td><\/tr><tr><td>\n  Acts done outside the scope\n  <\/td><td>\n  Absolutely void\n  <\/td><td>\n  Can be ratified by shareholders.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Memorandum_of_Association\"><\/span>Definition of Memorandum of Association<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Memorandum of Association refers to a\nfundamental public charter that encloses particulars needed at the time of\nincorporation. <\/p>\n\n\n\n<p>Presently, MOA acts as a mandatory requirement for incorporation in India. At the time of the company&#8217;s incorporation, it needs to be registered with the <strong>Registrar of Companies<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/contact-us\/roc.html\"><strong>[1]<\/strong><\/a><\/sup>. It encloses the powers, objects, and scope of the company, beyond which an organization is not permitted to operate, i.e. it imposes a limitation on the range of undertakings of the company. <\/p>\n\n\n\n<p>Any individual who deals with the company\nis presumed to have read the company. i.e. they must be accustomed to the\ncompany&#8217;s objects and its area of activities. <\/p>\n\n\n\n<p><strong><em>The Memorandum is also referred to as the\ncompany&#8217;s charter. There are six clauses mentioned under the MoA as shown\nbelow: <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Name Clause \u2013<\/strong> As the name suggests, the name clause specifies the company&#8217;s name. The company&#8217;s name ought not to be similar to any existing organization. Also, if it is a privately-held company, then it should have the term &#8220;<strong><a href=\"https:\/\/corpbiz.io\/private-limited-company-registration\" target=\"_blank\" rel=\"noreferrer noopener\">Private Limited<\/a><\/strong>&#8221; affixed at the end of its name. <\/li>\n\n\n\n<li><strong>Registered Office Clause<\/strong>&#8211; This clause states the state&#8217;s name in which the entity&#8217;s registered office is operational. This helps to pinpoint the jurisdiction of the RoC. The company is required to share the same with the RoC within thirty days from the <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a> date.<\/li>\n\n\n\n<li><strong>Object Clause-<\/strong> This clause specifies the company&#8217;s fundamental objective with which it is founded. The objectives can be divided into given three subcategories:<\/li>\n<\/ul>\n\n\n\n<p><strong>Main Objective:<\/strong> It specifies the fundamental business of\nthe company.<\/p>\n\n\n\n<p><strong>Incidental Objective:<\/strong> Incidental Objective specifies the\nancillary objects that help in accomplishing the company&#8217;s main object.<\/p>\n\n\n\n<p><strong>Other\nobjectives:<\/strong> Any other\nobjects which the company is willing to pursue and not encompassed in above (a)\nand (b)<\/p>\n\n\n\n<ul>\n<li><strong>Liability\nClause:<\/strong> The liability\nClause defines the liability of the company&#8217;s members. For a company limited by\nguarantee, the members&#8217; liability is limited by the amount each company member\nhas agreed to contribute. In the case of an unlimited company, the members&#8217;\nliability is unlimited, whereas, for a company limited by shares, the members&#8217;\nliability is limited by the sum unpaid on their share.<\/li>\n\n\n\n<li><strong>Capital\nClause:<\/strong> This clause pens\ndown the maximum capital that an entity can procure, which is also regarded as\nthe authorized\/nominal capital of the company. This also defines the numbers of\nshares derived from such capital amount.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Articles_of_Association\"><\/span>Definition of Articles of Association<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An article of Association is technically\na secondary document, which sets out the rules and norms made by the company\nfor its management and daily activities. Additionally, the AOA encloses the\nrights, obligations, powers, and duties of members of the company. It also\ncovers details relating to the audits and accounts of the company. <\/p>\n\n\n\n<p>Every company is required to draft AOA. But, a <strong><a href=\"https:\/\/corpbiz.io\/public-limited-company-registration\" target=\"_blank\" rel=\"noreferrer noopener\">public company limited<\/a><\/strong> by shares can opt for Table F rather than AOA. It encloses all the key information relating to internal matters and the company&#8217;s management. It is drafted for the person serving the company internally, i.e. members, employees, directors, etc. The company&#8217;s governance is done as per the rules cited in it. <\/p>\n\n\n\n<p>The companies can draft their article of\nassociations according to their requirement. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Difference_Between_MOA_and_AOA\"><\/span>Key Difference Between MOA and AOA&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The fundamental <strong>difference between MOA and AOA<\/strong>&nbsp;are listed below:<\/p>\n\n\n\n<ol>\n<li>A Memorandum of Association refers to a\ndocument that comprises the conditions essential for the company&#8217;s\nincorporation. On the other hand, Articles of Association encloses the rules\nand norms for the company&#8217;s management. <\/li>\n\n\n\n<li>Memorandum of Association (MoA) is a\nsubsidiary of the Companies Act; meanwhile Articles of Association (AoA) is\nsubsidiary to both the Act and MoA. <\/li>\n\n\n\n<li>In any contradiction between the MoA\nrelating to any clause, MoA shall prevail over the Articles of Association.<\/li>\n\n\n\n<li>Memorandum of Association has details\nrelating to the objects and powers of the company. Alternatively, AOA has\ninformation about the norms and rules of the company. <\/li>\n\n\n\n<li>Memorandum of Association should have six\nfundamental clauses. On the contrary, AoA is drafted as per the company&#8217;s\ndiscretion.<\/li>\n\n\n\n<li>MoA has to be registered with the\nRegistrar of Companies at the time of incorporation. For AoA, the company is\nnot required to fulfil such requirements, though there is a provision for\nvoluntarily registration. <\/li>\n\n\n\n<li>A MoA specifies the interplay between the\ncompany and third parties. On the opposite, AoA regulates the interplay between\nthe company and its serving members. It also defines the interplay between the\nmembers. <\/li>\n\n\n\n<li>When\nit comes to scope, the activities carried out beyond the scope of MoA are null\nand void. On the contrary, activities performed outside the scope of AoA can be\nratified by shareholders&#8217; voting. <\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Memorandum of association and articles of association are the two imperative documents of an organization. Both these documents guide the company on various subject matters. They also assist in the apt administration and functioning of the company. That is why every company is mandated to draft its Memorandum and articles.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/register-of-members-under-the-companies-act-2013\/\">Register of Members under the Companies Act, 2013\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Memorandum of association and articles of association serves as charter documentation for establishing the company and its undertaking thereon. Memorandum of association is an abbreviated term for MoA, which is the fundamental document of the company, which entails all the key particulars of the company. Meanwhile, the Articles of Association is an abbreviation for [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":40822,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2162],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":250819,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40818"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=40818"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40818\/revisions"}],"predecessor-version":[{"id":64386,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40818\/revisions\/64386"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/40822"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=40818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=40818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=40818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}