Memorandum of Association and Articles of Association.
| Memorandum of association |
Articles of association |
| 1.Importance: It has primary importance in the formation of company. |
It has a secondary importance in the formation of company. |
| 2.constitution: it is a constitution of the company. |
It contains rules which govern the administra-tion of the company. |
| 3.object: It lays down the objects of the company. |
It contains the procedure of achieving objects the provision can be changed by the special resolution |
| 4.Altrnate: It is not alterable but it can be amended by special resolution and sanction of the court or central government |
It maintains relation between the company and the persons inside the company. |
| 5.Relation : lt nature is like contract between the company and outsiders like bankers and creditors. |
It maintains relation between the company |
| 6.Regulation: It contains rules which governs the administration of the company. |
The registration of articles is optional for the company limited by shares it may adopt all or any of regulation |
| 7.Nature of document :it does not allow the company to act against the company ordinance. |
It is a subsidiary document to memorandum of association |
| 8.Limits: This document determines the limits of the company business . |
Business limits are not mentioned in it |
Differences between Public Company and Private Company
| Private company |
public company |
| 1.Minimum and maximum members:It has minimum 2 and maximum 50 members. |
It has minimum 7 and maximum unlimited members |
| 2.Invitation to public: it cannot invite general public to buy its shares and debentures. |
It invites general public to buy its shares and debentures. |
| 3.Transfer of shares: There are certain restriction on transfer o its shares . |
Its share are freely transferable |
| 4.commencement of business: it can commence business after incorporation . |
It can commence business after obtaining certificate of commencement of business. |
| 5.Name: It has to write "private Ltd" after its name. |
It has write only "Limted" after its name. |
| 6.Minimum capital: minimum capital required is one lakh. |
In it minimum capital required is five lakhs |
