When it comes to estate planning, there are two main legal documents that you will need to choose from: a will and an estate plan. While both documents have their own unique benefits, they serve different purposes. Here is a look at the differences between MOA and AOA legal documents.
What is MOA?
MOA Memorandum of Association is a legal document that defines the relationship between a company and its shareholders. MOA sets out the rights and duties of shareholders, as well as the company’s purpose and powers. MOA is filed with the Registrar of Companies at the time of incorporation. The MOA must be signed by each shareholder and must be consistent with the company’s Articles of Association. MOA can be amended by a special resolution of shareholders. MOA is also sometimes referred to as the charter document or founding document.
What is AOA?
AOA Articles of Association is a term used to describe the rules and regulations that govern a company or organization. The AOA establishes the rights, duties, and powers of the board of directors, shareholders, and other members of the organization. It also sets forth the procedures for holding meetings and electing officers. The AOA is filed with the Registrar of Companies in the country of incorporation and is a public document. Copies of the AOA are also typically provided to shareholders upon request. The AOA Articles of Association can be amended from time to time as required by law or by the shareholders.
Difference between MOA and AOA
- MOA, or Memorandum of Association, is a legal document that outlines the regulations and governing principles of a company. AOA, or Articles of Association, is a document that outlines the company’s regulations regarding shareholder rights and responsibilities.
- MOA is filed with the Registrar of Companies at the time of incorporation, while AOA is filed at the time of registration of the company. MOA contains the company’s name, its registered address, the names of its directors, and its objects clause.
- AOA contains provisions regarding share capital, transfer of shares, shareholders’ meetings, and voting rights. MOA can be altered only by a special resolution passed by the shareholders, while AOA can be altered by a simple majority vote of the shareholders.
The terms of an agreement are important and should be spelled out clearly in any legal document. If you have questions about the differences between a memorandum of understanding (MOA) and an operating agreement (OA), please consult with an attorney. They can help you understand the specific implications of each type of agreement for your business.