Question
What is the distinction between a Memorandum and Articles of Association?
Answer :
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Under company law, the distinction between the Memorandum of Association and the Articles of Association lies in their nature, scope, and legal significance. Both are essential documents required for the incorporation of a company under statutes such as the Companies Act, 2013, but they serve different purposes. The Memorandum of Association is the fundamental charter of the company. It defines the company’s constitution and sets out the limits within which the company can operate. It contains essential clauses such as the name clause, registered office clause, objects clause, liability clause, capital clause, and subscription clause.
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