ExpertEasy1 markMultiple Choice
Syllabus D: The formation and constitution of business organisationsSection ACorporate and Business Law
ACCA · Question 33 · Syllabus D: The formation and constitution of business organisations
Which document forms the internal constitution of a company, regulating matters such as the appointment of directors and the conduct of meetings?
Which document forms the internal constitution of a company, regulating matters such as the appointment of directors and the conduct of meetings?
Answer options:
A.
The Memorandum of Association
B.
The Articles of Association
C.
The Certificate of Incorporation
D.
The Prospectus
How to approach this question
Identify the document that serves as the company's internal rulebook.
Full Answer
B.The Articles of Association✓ Correct
The Articles of Association form the company's constitution. They set out the rules for running the company's internal affairs, including the issue of shares, holding board and general meetings, and the powers and duties of directors.
Common mistakes
Confusing the Articles of Association with the Memorandum of Association (which had a different role under older Companies Acts).
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