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The difference between Articles of association and memorandum of Association is that the latter deals

Commerce
JAMB 2019

The difference between Articles of association and memorandum of Association is that the latter deals

  • A. with the Internal working relationship of the company and its members
  • B. with the powers and relationships of the company with outsiders
  • C. The method of issue, transfer and future of the company's shares
  • D. The rights and responsibilities of shareholders
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Correct Answer: Option B
Explanation

Memorandum of Association contains what is generally called the "external" rules of the company. They refer to the objectives of the company and hold it intends to interact with the public.

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