A public limited company intends to diversify into a new manufacturing sector that is not listed in its registered object clause. Which constitutional document must be altered before the company can legally engage in this new business line?
- Memorandum of Association, as it sets the external boundaries and scope of permissible corporate activities.Cevap
- BArticles of Association, as it regulates the internal management rules and corporate governance procedures.
- CProspectus, as it specifies the financial terms and conditions of public share subscriptions.
- DCertificate of Incorporation, as it serves as legal proof of the company's statutory existence.
Cevap
Memorandum of Association, as it sets the external boundaries and scope of permissible corporate activities.
The Memorandum of Association is the primary legal document that defines a company's external powers, statutory name, capital structure, and object clause. Engaging in activities beyond the objects stated in the Memorandum is ultra vires, so altering this document is required to legally pursue a new line of business.
Adım Adım Çözüm
Anahtar Kavram
Memorandum of Association vs. Articles of Association