Difference between Memorandum MOA and Articles of Association AOA
In order to form a company we need 2 documents to make the structure of the company those are MOA and AOA.
Definition
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MEMORANDUM OF ASSOCIATION
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All fundamental data which are required for the incorporation of a company is mentioned under MOA/ MEMORANDUM OF ASSOCIATION.
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ARTICLES OF ASSOCIATION
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All the rules and regulations of a company are mentioned under AOA/ ARTICLES OF ASSOCIATION.
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Scope
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MEMORANDUM OF ASSOCIATION
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MOA is the document which characterizes and limits powers and constraints of the organization.
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ARTICLES OF ASSOCIATION
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The articles demonstrate rights, obligations, and powers of individuals, who are endowed with the responsibility of running the organization and administration.
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Registration
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MEMORANDUM OF ASSOCIATION
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MOA of an organization must be registered at the time of its incorporation.
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ARTICLES OF ASSOCIATION
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AOA may or may not be registered at the time of incorporation of an organization.
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Contents
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MEMORANDUM OF ASSOCIATION
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A MOA must contain six clauses:- Name Clause, Situation Clause, Objects Clause, Liability Clauses, Capital Clause, Association Clause.
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ARTICLES OF ASSOCIATION
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The AOA can be drafted according to the decision of the Company.
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Objectives
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MEMORANDUM OF ASSOCIATION
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The MOA contains the objectives and powers of the company and the powers of directors.
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ARTICLES OF ASSOCIATION
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AOA provides the regulations through which those objectives and powers are to be conveyed into impact. (AOA tells the proper way of achieving objectives and using powers.)
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Status
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MEMORANDUM OF ASSOCIATION
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Supreme document
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ARTICLES OF ASSOCIATION
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It is subordinate to the MOA.
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Power
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MEMORANDUM OF ASSOCIATION
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ARTICLES OF ASSOCIATION
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Validity
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MEMORANDUM OF ASSOCIATION
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The memorandum is the dominant instrument and controls articles
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ARTICLES OF ASSOCIATION
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Any provision, as opposed to a memorandum of association, is invalid.
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