Which document outlines the objectives and share capital of an incorporated company?

Which document outlines the objectives and share capital of an incorporated company?

• A. Memorandum of Association
• B. Articles of Association
• C. Statement of Capital
• D. Certificate of Incorporation

Answer: (A)

When a company is formed, its fundamental purpose and the scale of its ownership are set in its constitutional documents. The Memorandum of Association is the document that historically lists the company’s name, its registered office, the objects (the activities the company is formed to carry out), and the amount of authorized share capital. This is why it’s the one that outlines both the objectives and the share capital. The Articles of Association cover internal rules for running the company, not its aims or capital structure. The Statement of Capital records the current share capital, not the company’s objectives. The Certificate of Incorporation is simply the official document that confirms the company has been legally formed.

When a company is formed, its fundamental purpose and the scale of its ownership are set in its constitutional documents. The Memorandum of Association is the document that historically lists the company’s name, its registered office, the objects (the activities the company is formed to carry out), and the amount of authorized share capital. This is why it’s the one that outlines both the objectives and the share capital.

The Articles of Association cover internal rules for running the company, not its aims or capital structure. The Statement of Capital records the current share capital, not the company’s objectives. The Certificate of Incorporation is simply the official document that confirms the company has been legally formed.