Difference Between Memorandum of Association and Articles of Association

Memorandum of Association vs Articles of Association

Memorandum of Association and Articles of Association are documents that are very important to know about a company in detail, and together they form the constitution of a company. Though there are some similarities, both serve different functions and purposes and are important for different class of people having interest in the company’s performance. This article attempts to find out these differences for the benefit of the readers.

Articles of Association

‘Articles of Association’ is an internal document of a company and people commonly refer to it as just articles. These are rules governing an organization and are normally filed with the Registrar of Companies. The major features of articles of association are as follows.

Structure of the organization along with control mechanism

• Voting pattern and rights of the employees

• Mode of conduct of director’s meetings

• Mode of conduct of AGM of shareholders

• Difference in rights of different kinds of shares

Memorandum of Association

Memorandum of Association is a binding document for any organization that must be filed with the Registrar of Companies and it reflects the relationship of the company with the outside world. The major features of a Memorandum of Association are as follows.

• The name, address and the office of the company that has been registered with the Registrar

• The way the share capital of the company is structured

• Aims and objectives of the company

What is the difference between Memorandum of Association and Articles of Association?

Memorandum of Association is also called the charter of an organization and is a useful document for the investors to know how there money is being invested and utilized by the company. On the other hand, Articles of Association is also important as it lets one get a look into the internal structuring of the company and how the power flows down. It tells about the laws governing internal management of the company. It also reflects the roles, responsibilities and functions of various people in the management of the company.

  • http://www.facebook.com/profile.php?id=100000350259685 Gurpreet Kaur

    very clear meaning with Comparative method ….

  • nabeela

    simple language and anyone can understand

  • Karen Moke

    Why acra did not give a clear explanation like those above?