Company law assignment Essay Example | Topics and Well Written Essays - 3000 words

Company law assignment - Essay Example Memorandum is therefore a document of great importance in relation to the proposal company (Palmer â€Å"Company Law (20th ed.)P.56. It is infact a charter of a company. â€Å"The memorandum defines the limitations of the powers of the company†¦it contains in it, both that which is affirmative and that which is negative. It states affirmatively the ambit and extent of vitality and powers which by law are given to the corporation, and it states negatively, if it is necessary to state, that nothing shall be done beyond that ambit. â€Å"It sets out the constitution of the company, it is so to speak the charter of the company, and provides on which the structure of the company is built. The importance of the memorandum lies in the fact that it defines the scope of companies’ activities as well as its relation with the outside world. Its purpose is to enable the shareholders, creditors and those who deal with the company to know what its permited range of its enterprise. The Articles of Association of a company are the internal regulations which govern the management of the internal affairs of a company. The articles are meant to regulate the internal affairs of a company. The members have full control and may by resolution alter them as they think fit so long as they do not exceed the limits defined by the memorandum or the Companies Act. The Companies Act defines Articles of Association as: â€Å"Articles means the articles of association of a company as