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What is the Article Of Association (AOA)?

by Kusum Joshi

The Article Of Association (AOA) is a report that defines the cause of an organization and specifies the rules for its operations. The report describes how responsibilities need to be completed inside a company, such as the training and control of monetary facts and the method for appointing administrators.

Difference between AOA (Article Of Association) and MOA (Memorandum Of Association)

  1. AOA means the Articles of Incorporats the company. It includes company rules. Although MOA means a memorandum of understanding of the company’s association. It contains all the basic information about the company.
  1. For AOA, it is not mandatory to register the document with the registrar, but it is mandatory to register the MOA at the time of registration.
  1. The AOA is the company’s ancillary document, while the MOA is the company’s main document. Also known as the company charter.
  1. AOA is a set of company rules and regulations that must be complied with. MOA consists of all kinds of activities that a company carries out.
  1. Article of association connects the company with the board and members, and MOA connects the company with the outside world.
  2. AOA regulates by the Companies Act 2013 and its Articles of Incorporation, while MOA regulates by the Companies Act 2013.
  1. Articles of association easily changes by passing a special resolution, but MOA cannot . It requires prior approval from the central government or NCLT.
  1. The AOA also invalidates all activities of the company beyond the scope of the article, but can be approved later by members of the company. However, all activities of the company beyond the scope of the memorandum are considered unauthorized. It cannot be ratified.
  1. Contracts that enters into violation of AOA’s provisions consider invalid, but contracts that enters into violation of MOA’s provisions considers invalid.
  1. AOA modifies with retroactive effects, but MOA cannot be modified with retroactive effects.

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