Contrast the contents and functions of the articlesof association and memorandum of associationof a limited company.

The Memorandum of Association and the Articles of Association are two key documents that are required to establish a limited company in many jurisdictions. They serve different purposes and contain different types of information.

1. Memorandum of Association: This is a legal document that is necessary to set up a company under the Companies Act. It defines the relationship of the company with the outside world. It includes the following details:

   • The company's name
   • The location of the company's registered office
   • The objectives of the company
   • The type of company (public or private)
   • The amount of share capital and the division of shares

   The main function of the Memorandum of Association is to provide necessary information about the incorporation of a company. It also defines the limitations of the powers of the company as it specifies the scope of activities of the company.

2. Articles of Association: This document is a detailed guide on the internal management of the company. It outlines the rules and regulations that govern the company's internal affairs and management. It includes information such as:

   • The rights, duties, and powers of the company's management
   • The rights and responsibilities of the shareholders
   • The rules for conducting meetings
   • The procedures for audit and accounting

   The main function of the Articles of Association is to define the roles and responsibilities of the directors and the means by which the shareholders exert control over the board of directors.

In summary, while the Memorandum of Association defines the relationship between the company and the outside world and outlines the scope of its activities, the Articles of Association deal with the internal management affairs of the company.