Professional Documents
Culture Documents
OF
ASSOCIATION
INTRODUCTION TO ARTICLES OF
ASSOCIATION
Contain the rules relating to the management of
internal affairs of a company & are basically for the
benefit of the shareholders
•Printed
•Divided into paragraphs numbered consecutively
•Signed by each signatory of the memorandum in the presence
of atleast one attesting witness
Also articles should not contain anything which is
against:
LAW OF THE LAND
warrants
4.Alteration of share capital
5.Borrowing powers of directors
10.Rules as to resolutions
Doctrine has been applied to make companies liable in case where deals
were made by the directors:
Knowledge of irregularity
Sufficient ground for suspicion
Forgery
Acts outside apparent authority
Non existence of agency
Acts ultra vires the company
DIFFERENCES
BETWEEN
MEMORANDUM OF
ASSOCIATION(MOA) &
ARTICLES OF
ASSOCIATION(AOA)
MoA AOA
Defines the limits and
objects of the company •Internal regulations of the company;
subsidiary to memorandum
•Subordinate to the Act and to the
Subordinate to the act
Memorandum
only •A public company limited by shares
Must be filed with need not file a separate set of articles
registrar by all companies •Govern internal relationship
between the company and members
Defines the relation
between the company
and outsiders
MoA AOA
Cannot be easily altered Easily alterable by
passing a special
resolution only
Acts ultra vires
Memorandum are void Acts ultra vires Articles
are simply irregular and
not void
No remedy against
company for contracts
Outsiders can enforce
entered into ultra contract even if its ultra
vires the vires articles
memorandum