Question 1

Write down
Article of association
Memorandum of association.

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Comparison Chart

BASIS FOR MEMORANDUM OF ARTICLES OF

COMPARISON ASSOCIATION ASSOCIATION

Meaning Memorandum of Association is a Articles of Association

document that contains all the is a document containing
fundamental information which all the rules and
are required for the incorporation regulations that governs
of the company. the company.

Defined in Section 2 (56) Section 2 (5)

Type of Powers and objects of the Rules of the company.

Information company.
contained

Status It is subordinate to the Companies It is subordinate to the

Act. memorandum.

Retrospective The memorandum of association The articles of

Effect of the company cannot be association can be
amended retrospectively. amended retrospectively.

Major contents A memorandum must contain six The articles can be

 BASIS FOR MEMORANDUM OF ARTICLES OF
COMPARISON ASSOCIATION ASSOCIATION

clauses. drafted as per the choice

of the company.

Obligatory Yes, for all companies. A public company

limited by shares can
adopt Table A in place
of articles.

Compulsory filing Required Not required at all.

at the time of
Registration

Alteration Alteration can be done, after Alteration can be done

passing Special Resolution (SR)
in Annual General Meeting
(AGM) and previous approval of
Central Government (CG) or
Company Law Board (CLB) is
required.
in the Articles by
passing Special
Resolution (SR) at
Annual General Meeting
(AGM)

Relation Defines the relation between Regulates the

company and outsider. relationship between
company and its
members and also
between the members
inter se.

Acts done beyond Absolutely void Can be ratified by

the scope shareholders.