Memorandum of Association and Article of Association Differences

The key difference between a memorandum of association and an article of association is that the memorandum of association is a document that contains all the bylaws and regulations of the companies. Like the company’s Bible, it is necessary for incorporating any company in India. But, on the other hand, the article of association is a document containing all the rules and regulations of the company which has registered itself in India and is governed by that.

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The memorandum and article of the association through which the companies are regulated in India act as a charter.

Memorandum of Association vs Article of Association Infographics

Let us see the top differences between the memorandum of association and the article of association.

Key Differences

  • The memorandum of association talks about the powers and the objectives of the company. It describes the limitations of a company and the capabilities within which the company can operate in a given scenario. On the contrary, the article of association talks about the company’s rules, which generally emphasize the internal controlsInternal ControlsInternal control in accounting refers to the process by which a company implements various rules, policies, or procedures to ensure the accuracy of accounting and finance information, safeguard the various assets of the business, promote accountability in the business, and prevent the occurrence of frauds in the company.read more and the governing of the company.Once registered and submitted with the registrar of the companies act, the memorandum of association cannot be changed and amended within the company’s bylaws. On the other hand, the article of association can always be altered and amended as the scope of the internal procedures and controlsInternal Procedures And ControlsInternal control in accounting refers to the process by which a company implements various rules, policies, or procedures to ensure the accuracy of accounting and finance information, safeguard the various assets of the business, promote accountability in the business, and prevent the occurrence of frauds in the company.read more of the company can always be changed retrospectively.The memorandum of association is always necessary and is required within the jurisdiction of the companies act. On the other hand, the article of association is not always essential to be made and submitted to the ROCROCROC’s is the Registrar of Companies. Registrar of Companies is the public authority under the Ministry of Corporate Affairs, which administers different companies and the LLPs (Limited Liability Partnerships) in India and under the administrative control of the country’s central government.read more act for a company to get registered.

Comparative Table

Conclusion

In the companies’ act, every company should amend and draft these two documents, which are vital before commencing its operations. Furthermore, these two documents are what every director and the founder of the company should look forward to, as these documents will pave the path on how the company should look in the future and the internal policies and the procedures that the directors need to lay down when the company is incorporated to lay down the perspective of the company.

This article is a guide to the Memorandum of Association vs Article of Association. We discuss the top differences with infographics and a comparison table. You may also have a look at the following articles: –

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