Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

Memorandum of Association and Articles of Association

(b) Distinction between Memorandum of Association and Articles of Association:

 

 Memorandum of association Articles of association
1. It is the Charter of the Company. It contains the Fundamental conditions upon  which alone the Company is granted incorporation 1. It contains the rules and regulations framed to govern the internal management of the company.
2. It defines the objects and powers of the Company. It fixes up the scope and the extent of the activities of the Company. 2. It forms the bylaws of the company and provides those regulations by which the objects and power of the Company can be carried out
3. It can be altered only by following the prescribed legal procedures. 3. It can be altered by passing a Resolution at shareholders General Meeting.
4. It controls the Articles of Association 4. It is subordinate to the ‘Memorandum, its contents cannot go against the memorandum
5. ‘Things done by a Company beyond the scope of the memorandum are absolutely void and can not be ratified even be a unanimous vote of the Shareholders 5. things done by Company beyond Articles are simply irregular and not void and can easily be confined or ratified subsequently by the Shareholders.

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