Final answer:
The Memorandum of Association defines a company's structure and its relations with the outside world, while the Articles of Association govern a company's internal management, covering topics like the appointment of directors and meeting conduct. Both are key documents for company incorporation.
Step-by-step explanation:
The Memorandum of Association and the Articles of Association are two fundamental documents required for the incorporation of a company.
These documents serve as a constitution of sorts, outlining the framework within which a company operates and the rules governing its internal affairs.
The Memorandum of Association defines the company's structure and its relationship with the outside world. It includes details like the company's name, the location of its registered office, the objectives for which it is formed, its authorized share capital, and the liability of its members.
On the other hand, the Articles of Association is more focused on the internal management and administrative affairs of the company. This document spells out the rules for the running and regulation of the company's internal affairs, including processes for appointing directors, conducting meetings, and issuing and transferring shares.
While the Memorandum of Association sets out the company's powers and purposes, giving it a specific field of operation, the Articles of Association provide a set of guidelines and regulations on how the company's business should be conducted and managed by directors and shareholders.
Both documents are public and can be accessed by the general public, providing a level of transparency and understanding about a company's basic structure and operating practices.