What Is The Difference Between A Memorandum Of Association And The Articles Of Association In The Realm Of The Pakistan Corporate Law?

Both the Memorandum of Association and the Articles of Association are very important documents for any type of company be it a public-limited company or a private-limited company. For a company, a Memorandum is the constitution of the charter of the company. In other words, a Memorandum defines and confines the power of the company. As for the Articles of Association, they are the by-laws of the company that give an explanation to the Memorandum. While the Memorandum regulates the interaction of the company with the external world, the Articles of Association are responsible for the internal conduct of the company. Also registration of the Memorandum is compulsory for every company. On the other hand, registration of Articles of Association is not compulsory for a company that is limited by shares. Such a company may adopt Table A in place of Articles of Association. In addition to that, a Memorandum is sub-ordinate to only the Company's ordinance 1984 while the Articles of Association are sub-ordinate to both the Memorandum and the Articles of Association.

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