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Q.(OR) Give any six differences between the Memorandum of Association and the Articles of Association.
Haryana BsehBSEH Haryana Senior Secondary Class 11 (Commerce) 2024Subjective· 6mImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →MOA is the company's charter of objects/powers governing outside relations (compulsory, hard to alter); AOA is the internal rulebook subordinate to it (optional for some, easier to alter).
Six differences between the Memorandum of Association (MOA) and the Articles of Association (AOA):
- Meaning: the MOA is the fundamental charter that defines the company's objectives, scope and powers; the AOA contains the internal rules and regulations for the management of the company.
- Relationship: the MOA defines the company's relationship with the outside world; the AOA governs the relationship between the company and its members and the internal conduct of affairs.
- Subordination: the AOA is subordinate to the MOA and cannot contain anything contrary to it or to the Companies Act.
- Necessity: the MOA is compulsory for every company; the AOA is not compulsory for a public company limited by shares, which may adopt the model articles (Table F) instead.
- Alteration: the MOA can be altered only with difficulty, through a prescribed procedure and often with approval of the authorities; the AOA can be altered relatively easily by passing a special resolution. …
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