Question

What is known as the charter of a company?

• A. Memorandum of association
• B. Bye-laws
• C. Articles of Association
• D. Prospectus

Hint:

Always review the Memorandum of Association when studying corporate governance as it defines the company’s scope, powers, and operations.

Answer 1

The Correct Option is A

The Memorandum of Association is the primary legal document that establishes a company’s existence and defines its relationship with the outside world.
It acts as the charter of the company.

Answer 2

The Memorandum of Association is known as the charter of a company.

It is a fundamental legal document that defines the company's constitution and scope of activities. The memorandum outlines the company’s name, its registered office, objectives, liability of members, capital structure, and the extent of its powers.

This document serves as the foundation on which the company is built and governs its relationship with the outside world.

No company can operate beyond the powers and objectives stated in its Memorandum of Association.

Conclusion:
The Memorandum of Association is regarded as the charter of a company, laying down its essential framework and legal foundation.