THE MEMORANDUM AND ARTICLES OF ASSOCIATION：的组织章程大纲及章程细则.pptVIP

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THE MEMORANDUM AND ARTICLES OF ASSOCIATION：的组织章程大纲及章程细则.ppt

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THE MEMORANDUM AND ARTICLES OF ASSOCIATION：的组织章程大纲及章程细则

THE MEMORANDUM AND ARTICLES OF ASSOCIATION Definition of Memo: The purpose of the memorandum is to enable the members of the company, its creditors, and the public to know what its powers are and what is the range of its activities. The memorandum contains rules regarding the capital structure, the liability of the members, the objects of the company, and all other important matters relating to the company. Definition of Articles: The Articles of Association is a document which contains rules, regulations and bye-laws regarding the internal management of the company. Articles must not violate any provision of the memorandum or any provision of the Companies Act. Relationship: Lord Cairns in Riche, described the relationship between the memorandum and the articles in this language: The memorandum is as it were, the area beyond which the actions of the company cannot go; inside the area, the shareholders may make such regulations for their own government as they think fit. The Articles are subordinate to Memorandum. The Memorandum must be read in conjunction with the Articles. The terms of the Memorandum cannot be modified or controlled by the Articles. Public Documents: The Memo and Articles are public documents, which may be inspected by anybody at the office of the Registrar of Companies. Differences: The distinction between the memorandum and the articles of association can be summed up as follows: The memorandum is determining the company’s constitution and objectives; the articles are rules regarding internal management. Any rule in the articles contrary to the memorandum is invalid. Articles can be altered easily, the memorandum can be altered only after the adoption of certain formalities. Certain clauses of memo cannot be altered without the sanction of the Central Government and of the Court e.g., the object clause and the liability clause. Other clauses can be altered easily e.g., the name clause. Articles can be altered by passing a special resolut