Difference between memorandum of the Union and article of the Union.

Due to the external viewpoint, both types of rules look similar to each other because both the related parties’ rights relate to the company’s details of the company’s functions and design, yet there will be a mistake to understand both, both of which are the physical difference, of which we can explain as following –

(1) The memorandum is the most important original document of the company, while the article is a subordinate document of the memorandum, as the article describes the objects as the article adopted for obtaining those items. Thus the article is a subordinate document of the memorandum.

(2) The Association Memorandum sets the limit of the area of operation of the Company while the article directs the legal processes required to fulfill those items.

(3) The memorandum contracts external management of the company while the article governs internal management of the company.

(4) Articles can only be changed by the special resolution of the company while the change in memorandum can be made only with the permission of the court exceptions of certain exceptions.

(5) The Company cannot do things that are not included in the memorandum, but works that are not mentioned in articles may also be done after the expected change.

(6) The memorandum is a kind of indenture between the Company and other parties which is essential that other parties should not be known, but external parties have no worries with the articles nor are obliged to them.

(7) If an external person makes an indentry with the company not allowed by the memorandum, he cannot be implemented by the indentry court and such actions which are beyond the power of the Board of Directors or memorandum but if these are in the field of operation of the memorandum, such actions are not illegal. Changes in rules in this regard can be made by members only by special resolution.

(8) Most memorandum is unstable but the article is originally changeable document, changes are often in it.

(9) External people have a creative knowledge of memorandum and articles. External people can accept it according to the principle of indoor management that the article could definitely be compliant. But the memorandum is respected, the question of the applicability of the theory of indoor management does not arise.