Memorandum of Association (MOA) is the supreme public document which
contains all those information that are required for the company at
the time of incorporation. It can also be said that, a company cannot be
incorporated without memorandum. At the time of registration of the
company, it needs to be registered with the ROC (Registrar of
Companies). It contains the objects, powers and scope of the company,
beyond which a company is not allowed to work, i.e. it limits the range
of activities of the company.
Any person who deals with the company like shareholders, creditors,
investors, etc. is presumed to have read the company, i.e. they must
know the company’s objects and its area of operations. The Memorandum is
also known as the charter of the company. There are six conditions of
Articles of Association (AOA) is the secondary document, which
defines the rules and regulations made by the company for its
administration and day to day management. In addition to this the
articles contain the rights, responsibilities, powers and duties of
members and directors of the company. It also includes the information
about the accounts and audit of the company.
Every company must have its own articles, however, a public company
limited by shares can adopt Table A instead of Articles of Association.
It comprises of all the necessary details regarding the internal affairs
and the management of the company. It is prepared for the persons
inside the company, i.e. members, employees, directors, etc. The
governance of the company is done according to the rules prescribed in
it. The companies, can frame its articles of association as per their
requirement and choice.