Every entrepreneur anticipates the initial step of starting a business, which involves creating a legal entity through company registration. Companies operate under the guidance of key legal documents that define their permissible activities and restrictions. The Memorandum of Association (MOA) delineates the company’s range of activities and its relationship with the outside world, while the Articles of Association (AOA) specifies the rules for the company’s internal governance. Understanding the difference between MOA and AOA is crucial as they collectively establish the framework and operational guidelines that are essential for the formation of a private limited company
For the company registration Memorandum of Association is one of the important documents. All of the activities in which the company is engaging need to be mentioned under MOA. In simple terms, the Memorandum of Association creates a bridge between the company, its activities, and its relationship with the shareholders. The company is liable to perform only those acts which are mentioned in the MOA.
This is a supplementary document that defines the internal workings of the organization, as well as their management, rights, and responsibilities. It contains a company’s by-laws as well as other rules and regulations. The AOA’s content is consistent with the MOA and the Companies Act.
These abilities cannot be relinquished by a company. The article can be changed to address issues about which the memorandum is silent. For this, a special resolution is required to make the change.
S.No |
Memorandum Of Association(MOA) |
Article Of Association(AOA) |
1 |
MOA is a subsidiary of the company’s Act |
AOA is subsidiary to the company’s Act and MOA |
2 |
MOA contains all the basic information about the company |
AOA there will be information related to the rules and rights governed by the company. |
3 |
In MOA, there is a 6 clause which is needed to be filled by the company. |
AOA can be prepared based on the company preference. |
4 |
All the company’s need to oblige with the MOA. |
The AOA is mandatory for the private limited company’s only. |
5 |
MOA is required at the time of registering a company. |
AOA is not required while registration of company. |
6 |
If any activity is not mentioned in the MOA then it is considered as an absolute void. |
the case of AOA if shareholders approved the activity then it can be done. |
The difference between MOA and AOA is that they have different purposes. The AOA tells us who does what in a company, and the MOA shows us how things are done. In simple terms, the AOA is about people’s roles and responsibilities, while the MOA is about the steps and plans to achieve goals.
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