What is this friend..........

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Yusuf (Querist)
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31 August 2010 Q1> What is corporation & enterprises ........ ?
and what are their laws... ?

Q2>What is memorandum && articles of associations ?

hoping for your kind help ? :)

*My english is not good so please try to give me answers in simple english ?

Ankur Garg

Ankur Garg (Expert)
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31 August 2010 A company in India is governed by Companies Act, 1956 along with various other Acts. But Companies Act, is the main governing Act.

There are two important documents in relation to every company, defining its basic features and internal regulations, which are Memorandum of Association and Articles of Association.

Memorandum of Association

The Memorandum is the charter of a company, which defines the ambit of the operations and the business to be carried on by the company. It is the basic document in the constitution of a company. The main purpose of the Memorandum is to lay down the objects for which a company is formed.

Articles of Association

The Articles of Association is subordinate to the Memorandum of Association and is a public document. The Articles of Association of a company lays down the rules and regulations for the company's internal management, which provides powers to the company for its management by the Board and authority of the members to regulate the conduct of the company. It establishes a contract between the company and its members and between the members inter se. This contract governs the ordinary rights and obligations incidental to membership in the company. The Articles of Association of the company are 'not law' and do not have the force of law.

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