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Memorandum of Association
A Memorandum of Association is a document that regulates a company’s external activities and must be drawn upon forming a registered or incorporated company. As the company’s charter, it forms the company’s constitution.
The memorandum of association gives the company’s name, names of its members (shareholders), the number of shares held by them, and the location of its registered office. It also states the company’s objectives, amount of authorized share capital, whether the liability of its members is limited by shares or by guaranty, and what type of contracts the company is allowed to enter into.
The memorandum is a public document and may be inspected by anyone, usually at the public office where it is lodged.
Articles of Association
The Articles of Association is a document that contains the purpose of the company and the duties and responsibilities of its members defined and recorded clearly. Therefore, it is an important document that needs to be filed with the Registrar of Companies.
Articles of association often identify how a company will issue stock shares, pay dividends, and audit financial records and power of voting rights.
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