The charter of a company which defines the limitations and powers of the company is called
A. Memorandum of Association
B. Articles of Association
C. Statutory Report
D. Certificate of Commencement
Answer: Option A
Solution (By Examveda Team)
The memorandum of association of a company is the charter and defines the limitation of the power of the company established under Companies Act. Memorandum of Association is the most important document of a company. It states the objects for which the company is formed. It contains the rights, privileges and powers of the company. Hence it is called a charter of the company. It is treated as the constitution of the company. It determines the relationship between the company and the outsiders.This Question Belongs to Commerce >> Accounting
Right answer (A) are the memorandum of association
On Memorandum of association, powers and limitations of company are listed. In AOA powers and limitations of comapny personnel are listed.