Question

State the following statement is True or False:

The document which determine the scope of the business operations of a company is the Memorandum of Association.

• A. True
• B. False

Answer 1

The correct option is A True

Memorandum of Association is a legal document which is prepared in the formation and registration process of a limited liability company. It is called the charter of the company.

Memorandum of Association defines the company’s relationship with its shareholders. It is the most important document of a company as it states the objects of the company for which it is formed. It also contains the powers of the company within which it can act.