Comparison Between Articles and Memorandum

1. Presentation Topic 1
COMPARISON

2. 2BASIS FOR COMPARISON
MEMORANDUM OF
ASSOCIATION
ARTICLES OF ASSOCIATION
Meaning
Memorandum of Association is a
document that contains all the
fundamental information which are
required for the incorporation of the
company.
Articles of Association is a
document containing all the rules
and regulations that governs the
company.
Defined in Section 2 (56) Section 2 (5)
Type of Information contained
Powers and objects of the
company.
Rules of the company.
Status
It is subordinate to the Companies
Act.
It is subordinate to the
memorandum.
Retrospective Effect
The memorandum of association of
the company cannot be amended
retrospectively.
The articles of association can be
amended retrospectively.
Major contents
A memorandum must contain six
clauses.
The articles can be drafted as per
the choice of the company.
Obligatory Yes, for all companies.
A public company limited by shares
can adopt Table A in place of
articles.

3. 3BASIS FOR COMPARISON
MEMORANDUM OF
ASSOCIATION
ARTICLES OF ASSOCIATION
Compulsory filing at the time of
Registration
Required Not required at all.
Alteration
Alteration can be done, after
passing Special Resolution
(SR) in Annual General Meeting
(AGM) and previous approval of
Central Government (CG) or
Company Law Board (CLB) is
required.
Alteration can be done in the
Articles by passing Special
Resolution (SR) at Annual
General Meeting (AGM)
Relation
Defines the relation between
company and outsider.
Regulates the relationship
between company and its
members and also between the
members inter se.
Acts done beyond the scope Absolutely void Can be ratified by shareholders.

4. 4