Differences Between Memorandum of Association and Articles of Association With Provisions

Differences Between Memorandum of Association and Articles of Association With Provisions

The major differences between memorandum of association and articles of association are given as follows:


    (1)Memorandum of association is a document that contains all the condition which are required for the registration of the company. Articles of association is a document that contains the rules and regulation for the administration of the company.
    (2)Memorandum of Association is defined in section 2 (28) while the Articles of Association is defined in section 2 (2) of the Indian Companies Act 1956.
    (3)Memorandum of Association is subsidiary to the Companies Act, whereas Articles of Association is subsidiary to both Memorandum of Association as well as the Act.
    (4)In any contradiction between the Memorandum and Articles regarding any clause, Memorandum of Association will prevail over the Articles of Association.
    (5)Memorandum of Association contains the information about the powers and objects of the company. Conversely, Articles of Association contain the information about the rules and regulations of the company.
    (6)Memorandum of Association must contain the six clauses. On the other hand, Articles of Association is framed as per the discretion of the company.
    (7)Memorandum of Association is obligatory to be registered with the ROC at the time of registration of Company. As opposed to Articles of Association, is not required to be filed with the registrar, although the company may file it voluntarily.

Conclusion
Memorandum and Articles are the two very important documents of the company, which are to be maintained by them as they guides the company on various matters. They also help in the proper management and functioning of the company throughout its life. That is why every company is required to have its own memorandum and articles.