List five contents of a Memorandum of Association and five contents of an Articles of Association.
(b) Explain five problems faced by public corporations.
(a) Contents of Memorandum of Association
(i) Name of the company
(ii)Registered Address of the company
(iii) Main objective of the company
(iv) The authorized shares of the company
(v) Names of the promoters of the company
Content of Article of association
(i ) It states the structure of the company
(ii) The regulation of the company
(ili) Other objectives of the company
(iv) Structure of shares of the company
(v) Powers and duties of directors of the company
(b) Problems of public corporation
(i) Inadequate funding: Most public corporations are not adequately funded. This is because it is not funded for profit; thus, there is a limit to the funding.
(ii) Inefficiency: Most public corporations are inefficient because the people who manage them are politically appointed.
(iii) Political interference: Most public corporations do not enjoy independence. The politicians interfere, which may affect efficiency.
(iv) Poor attitude of staff to work: Most workers in public corporations see the corporation as no man's business and thus, are not effective at work.
(v) Political instability: Change of government too, can affect effectiveness, efficiency, and continuation of public corporation. All depend on the attitude of the government in power.
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