The format is standard for these documents, but you. Memorandum of association moa and articles of association aoa. Articles of association of a company and its importance. It is the foundation of which the whole structure of the company is built up. Importance of memorandum free download as word doc. Under section 10 of the companies act, 20, the memorandum and the articles when registered, shall bind the company and its members to the same extent as if it had been signed by. It relates to a note of something to be remembered. The memorandum of association of a company is an important corporate document in certain. A companys articles of association articles, once of secondary importance to the memorandum, have now taken primacy in the relationship between the constitutional documents of a company. Drafting of memorandum of association generally, the memorandum should contain the following parasclauses. The main purpose of the memorandum of association is to enable. According to section 256 of the companies act, 20 memorandum means the memorandum of association of a company as originally framed and altered from time to time in pursuance of any previous company law or this act.
The memorandum of association comes with its own importance it defines the limitations of the company. Articles of association, the second important document of a company, contain rules, regulations and byelaws for the internal administration of the company. What is memorandum of association and article of association. In general, the articles of association aoa is the second most important charter document associated with a company or organization, after the memorandum of association moa, and these two vital. Importance of memorandum of association under myanmar. Importance of memorandum of association commerce mates. Purpose of memorandum of association moa of a company. The memorandum of association is a document of great importance in relation to the proposed company. It is never too late and never too old to stress on the importance of amending the articles of association aoa of a company, especially after the companys received some funding. Memorandum of articles of association association charter of company regulations for interal management defines the scope of the activities rules for carrying out the objects of company. The memorandum of association or moa of a company defines the constitution and the scope of powers of the company. Or memorandum of associations the first step in the formation of a company. Memorandum of association moa and articles of associationaoa.
Importance of memorandum articles of association stocks free. The main purpose of the memorandum of association of a company is to make its readers aware of its contents so as to avoid any kind of fraud or misinformation in the future by the company or by its. Memorandum of association is the basic document of a joint stock company. There may be one witness for all signatures but one subscriber cannot be a witness to the signatures of another. Memorandum of association vs article of association top. Memorandum of association is a key document of any company that portrays the principals which are required to establish the. Difference between memorandum of association and articles.
Definition of memorandum of association small business chron. The memorandum of association or moa of a company defines. The memorandum of association is a document which sets out the constitution of a company and is therefore the foundation on which the structure of the company is. The memorandum of association enables shareholders, creditors and investors to know the permitting range of the company. Generally, the memorandum should contain the following parasclauses. The importance of memorandum of association of a company is extreme, together with the aoa, to the shareholders, creditors, investors, and other people and companies dealing with the company, in contexts of complete guidance and safety. Procedure for alteration of memorandum of association moa a company who is desirous of altering its memorandum of association moa will have to comply with the provisions of section of the. Importance of memorandum of association biyani institute of. For an organization, it is very important to have an efficient way of communication. Explain the contents of memorandum of association upcounsel. Memorandumarticle of association are important legal. The articles regulate the internal management of the company. This essay examines the role and importance of both the memorandum and articles before and after the 2006 act came into force. Memorandum of association is an important document of the company.
The importance of memorandum of association of a company is extreme, together with the aoa, to the shareholders, creditors, investors, and other people and companies dealing with the company, in. The articles of association is a document that specifies the regulations for a companys operations, and they define the companys purpose and lay out how tasks. Difference between memorandum of association and article of. Difference between memorandum of association vs article of association. These details are contained in the memorandum of association moa and articles of association aoa. Memorandum of association and articles of association are the necessary, most useful and important documents of the company which are to be managed to build the companys aim, objects, power. It contains the fundamental conditions upon which alone the company is allowed to be. Procedure for alteration of memorandum of association moa. Memorandum of association can be amended through passing of special resolution or through court or central govt. Importance of articles of association of a company explained. The memorandum of association moa is the supreme legal document related with a company or organization. Importance of articles of association of a company it is the articles of association of a company or organization, which lays down all rules, provisions, regulations, powers, duties, rights, and responsibilities related with the overall governance and management of the company. The importance of the articles of associationaoa after a round of funding. Articles define the powers of the directors and other officers of the company.
Names, addresses, occupations of the governors, council by the rules of the society, management of its affairs is entrusted. Both the memorandum as well as the articles should be construed. A memorandum of association is a document which sets out the constitution of a company. Memorandum of association sets out the limits outside which the company cannot. The memorandum of association is the most important document that needs to be formulated with utmost care.
Chairman, any important issue and which is on that account fit to. The memorandum of association of a company is an important corporate document in certain jurisdictions. Importance of memorandum of association under myanmar company act according to section 2 2 of the myanmar companies act, company means a company formed and registered this act or an. It is the document that governs the relationship between the company and the outside.
A memorandum is a written statement or record, especially one circulated for the attention of colleagues at work. The objects for which the society is established, 4. What is the significance of the memorandum of association. The importance of the articles of associationaoa after a. Memorandum of association is the supreme basic legal document for a company due to the following reasons.
According to lord macmillan, the purpose of the memorandum is to enable the shareholder, creditors and those who deal with the company to know what is permitted range of enterprise. Actually, all these people and entities are presumed to have read the moa and aoa of any company well before initiating any relations with the company. A memorandum of association contains a name clause, registered office clause. Section 4 of the act specifies in clear terms the contents of this important document which is the charter of the company. Difference between memorandum and articles of association. Significance of the memorandum of association lawteacher. A memorandum letter or simply known as memo is a letter containing a statement that is usually written by higher authorities of an organization for the purpose of sharing information. Memorandum of association is a document of prime importance for a company. Articles of association aoa, importance of articles of. The income and the property of the institute from whatever means derived shall be dispensed with solely for the promotion of the objects as set forth in the.
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