Difference between MOA And AOA

  • Vikas Ramdular Gupta
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  • Vikas Ramdular Gupta

    student in India

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Memorandum of Association and Articles of Association are very important documents. They help the owners to run the company with ease and help in streamlining the business. While one handles the relations of the company with the outsiders such as creditors and other stakeholders, the other regulates internal management. However, articles have always been subordinate to the memorandum. The fact that articles are to be framed in consonance with the five clauses of the memorandum exactly validates this point. Additionally, unlike Articles of Association, the memorandum must be compulsorily registered at the time of incorporation. Since establishing a company is no cakewalk, the entrepreneurs wishing to start a new company must keep all the intricate details in mind and form the MOA and AOA. Companies in India should have both AOA and MOA as they guide the company on various matters. They also aid the company in management; therefore, it should be drafted diligently in such a way that they provide flexibility to the company to expand further. Memorandums and Articles are to be maintained by them as they guide the company on various matters. They also help in the proper management and functioning of the company throughout its life. That is why every company is required to have its own memorandum and articles. Hence, they are indispensable for any private or public limited company.





International Journal of Law Management and Humanities, Volume 5, Issue 6, Page 1920 - 1924

DOI: https://doij.org/10.10000/IJLMH.113997

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