Memorandum of Association vs Article of Association
Memorandum of Association vs Article of Association (AOA) are two critical documents that lay down the foundation and internal rules for the functioning of a company. They serve different purposes and contain different information.
Memorandum of Association (MOA)
Purpose: The MOA is the charter of the company, defining its objectives and powers. It lays out the fundamental conditions upon which the company is incorporated.
Scope: It defines the company's relationship with the outside world, including its objectives, powers, and limitations regarding dealings with third parties.
Content: Typically, the MOA includes the company's name, registered office address, objectives (main and ancillary), details of shareholders (initial subscribers), and the authorized share capital.
Alteration: The MOA can be altered, but changes require special procedures and, in some jurisdictions, approval from regulatory bodies or shareholders.