Difference between MOA and AOA
The fundamental points of distinction between MOA and AOA are as
follows:
|
BASIS FOR COMPARISON |
MEMORANDUM OF ASSOCIATION |
ARTICLES OF ASSOCIATION |
|
Definition |
Memorandum of
Association (MOA) is a document that contains all the fundamental data which
are required for the company incorporation. |
Articles of
Association (AOA) is a document containing all the rules and regulations that
govern the company |
|
Registration |
MOA must be registered
at the time of incorporation. |
The articles may or
may not be registered. |
|
Scope |
The Memorandum is the
charter, which characterizes and limits powers and constraints of the
organization. |
The articles
demonstrate obligations, rights, and powers of individuals, who are endowed
with the responsibility of running the organization and administration. |
|
Status |
Supreme document. |
It is subordinate to
the memorandum. |
|
Power |
The memorandum cannot
give the company power to do anything opposed to the provision of the
companies act. |
The articles are
constrained by the act, but they are also subsidiary to the memorandum and
cannot exceed the powers contained therein. |
|
Contents |
A memorandum must
contain six clauses. |
The articles can be
drafted according to the decision of the Company. |
|
Objectives |
The memorandum
contains the objectives and powers of the company. |
The articles provide
the regulations by which those objectives and powers are to be conveyed into
impact. |
|
Validity |
The memorandum is the
dominant instrument and controls articles. |
Any provision, as
opposed to a memorandum of association, is invalid. |