Question

The document that states the constitution of a company and the limit of its powers is –
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of them

Answer 1

The most important document in the constitution of a company is the Memorandum of Association of the company. The Articles of Association is the second most important document that needs to be registered by any company for its incorporation, registration and subsequent operation. It is a public document laying down the rules for the internal management of the company and it does not have the force of ‘law’. The provisions of the article amount to public notice, known as constructive notice. This is the doctrine of constructive notice.