Under the Companies Act, 1956, what is the relationship

Solution

The Memorandum of Association defines the company's external powers, scope, and constitutional limitations its charter defining what the company can do. It contains objects clauses, share capital, liability, and names of subscribers. The Articles of Association regulate internal management and conduct of the company how directors manage, shareholding transfer, meetings, and decision-making procedures. While the Memorandum is fundamental and binding on the company and third parties (doctrine of constructive notice), Articles bind only members inter se. Articles cannot override or contradict the Memorandum; they are subordinate constitutional documents operating within the boundaries set by the Memorandum.