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articles of association & memorandum of association

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › articles of association & memorandum of association

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Vijay.
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  • March 10, 2021 at 6:39 pm #614133
    Syed Ahsan Ali
    Participant
    • Topics: 136
    • Replies: 85
    • ☆☆☆

    Can you please elaborate on articles of association & memorandum of association?

    March 20, 2021 at 9:23 pm #614849
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi Syed,

    So the articles of association are a lengthy document which represent the internal rules of a company. They contain shareholder rights and directors powers. It serves as a binding contract between the company and shareholders.

    The memorandum of association is a short document which basically confirms the names of all those people who want to start the company and “subscribe” to shares.

    I hope this helps?

    Kind regards,

    Vijay

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