Show the difference between memorandum of association and article of association. |
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| Ans : The difference between memorandum of association and article of association are shown below:
Basis of Diff.
Memorandum of association
Articles of association
Nature
The memorandum of association is the charter or constitution of the company.
The articles of association are the rules and regulation for regular operation of the business activities.
Contents
The memorandum explains power and objective of a company.
The articles of association involved rules and regulation for regular operation of the business activities.
Relationship
Memorandum is the document which maintains the relationship of company with that to the outsiders.
Articles are the documents which contains rules and regulation to maintain relationship of company with internal structure and members.
Status
Memorandum is the main document which is treated as constitution of the company.
Articles are the sub ordinate to memorandum of association. They are the rules for internal management.
Main motive
The main motive of the memorandum of association is to clarify the nature and objective of the company.
The main motive of articles of association is to explain the process to achieve the objectives mentioned in memorandum of association.
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