A Memorandum of Association (MoA) represents the charter of the company. It is a legal document prepared during the formation and registration process of a company to define its relationship with shareholders and it specifies the objectives for which the company has been formed. The company can undertake only those activities that are mentioned in the MoA. As such, the MoA lays down the boundary beyond which the actions of the company cannot go.
An extremely significant subsidiary to the Memorandum of Association, the Article of Association (AOA) constitutes all the empowering laws, norms, rules and regulations for the management to control the internal affairs of a company. It states the rules for the proper governance of a company’s work policies. It also defines the code of conduct for individual directors and board of directors, employees and other members concerning the management of a company. Irrespective of the type of company, an Article of Association should be a part of every company. It is a must-have for an unlimited company, a company limited by guarantee, a public company limited by shares and a private company limited by shares.