Differences between Articles of Association and Memorandum of Association

                                       Articles Of Association

                                  Memorandum Of Association

1.     It is an optional document. If a company does not prepare it own article of association it can take guide from the Table – A of companies ordinance.

2.     It relates to the internal affairs of the company and defines the rules and regulation according to which a company is run.

3.     The share holders of the company can change or amend it with simple majority.

4.     It cannot violate any clause of the memorandum of association.

5.     It is subordinate to memorandum of association.

6.     An article can be drafted as per the choice and requirements of company.

1. It is the most important document of the company. Without it no company can be established.
2. It introduces the company to the outsiders and defines the powers of the company.
3. It requires a specific legal procedure to make any amendment, requiring ¾ majority of shareholders.
4. It provides guidance for the contents of article of association.
5. It is subordinate to articles of association.
6. A memorandum must have six clauses i.e. name , place , object , capital , liability and subscription clasue.