Basis |
Memorandum of Association |
Articles of association |
Meaning |
Memorandum of Association is the charter of the company and defines the scope of its activities | An article of association of the company is a document which regulates the internal management of the company. These are the rules made by the company carrying out the objects or purposes. |
Relationship |
Memorandum of Association defines the relation of the company with the outside world. | Articles of association deals with the rights of the members of the company inter se and also establishes the relationship of the company with the members. |
Types of documents |
Memorandum of Association is a supreme document | Articles of association are subordinate to the Memorandum of Association. |
Alteration |
Memorandum of Association cannot be altered except in the manner and to the extent provided by the act. | Articles of association being only the bye-laws of the company can be altered by the special resolution. |
Provision if not followed |
A company cannot depart fro the provisions contained in its memorandum. If it does, it would be ultravires the company. | Anything done against the provision of Articles of association but which is intravires the Memorandum of Association can be ratified. |
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