Explain the following terms in relation to a company i. Memorandum of association ii. Articles of association iii. prospectus – NABTEB QUESTION

i. Memorandum of association is a document forming the constitution of a company and defining its objective and power with regards to its dealing with the outside word. It is a document containing the rules sand regulation which govern the external relationship of a company with outsiders.

ii. Articles of Association is a document in which the regulation which govern the internal management of the company affairs the duties, rights and power of the shareholders are stated.

iii. Prospectus is a document issued by the public limited companies inviting the public to subscribe for shares of the company