Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Articles of Association – Meaning, Definition and Contents

# Articles of Association (AOA)

## Meaning

If the Memorandum is the company's charter, the Articles are its rule-book. The MOA tells the world what the company can do; the AOA tells the company how to do it internally — how meetings are called, how directors are appointed, how dividends are declared, how shares are transferred.

  • AOA are framed to manage the internal affairs of the company.
  • They create rights and obligations between the members and the company.
  • They play a role subsidiary to the memorandum — they must accept the MOA as the charter.

## Statutory Definition – Section 2(5)

> 'Articles' means the articles of association of a company as originally framed or as altered from time to time in pursuance of any previous companies' law or of this Act.

Note: the definition deliberately includes articles "as altered from time to time" — i.e. once altered, the new version is the articles.

## Contents and Model of Articles – Section 5

The section prescribes five themes:

1. Contains regulations for management of the company.

2. Inclusion of matters as may be considered necessary.

3. Forms of articles as specified for different classes (Tables F, G, H, I, J under Schedule I for share-capital companies, guarantee companies, unlimited companies, etc.).

4. Model articles may be adopted by reference.

5. Companies registered after the commencement of the 2013 Act can adopt these model articles wholly or in part.

## Quick MOA vs AOA contrast

AspectMOAAOA
NatureCharter — what company can doRule-book — how it does things
RelationshipCompany to outside worldInternal management
SubordinationSupremeSubordinate to MOA and the Act
AlterationOften needs CG/Tribunal approvalUsually a Special Resolution

Worked example

### Example 1

Example – Why the AOA is subordinate: Suppose ABC Ltd's MOA contains an object of 'manufacturing pharmaceuticals'. If its AOA empowers the board to invest the company's funds in real estate trading, that AOA clause is invalid to the extent it permits activity outside the MOA — articles cannot enlarge the company's capacity beyond what the MOA permits.

⚠️ Common exam mistakes

  • Treating the MOA and AOA as interchangeable — they have different scopes and different alteration procedures.
  • Forgetting that the definition under Section 2(5) automatically covers articles as ALTERED, not just original ones.
  • Believing every company must draft its own articles — companies can adopt Model Articles (Tables F to J of Schedule I) wholly or in part.
Bare-Act text Sections 2(5) and 5 · The Companies Act, 2013 · click to expand
Section 2(5): 'articles' means the articles of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this Act.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic