Theory question 104
Business UnitsCommerce 2 (essay)
List and explain four documents involved in the formation of a public limited company.
Show the model answer
Model answer
Any four, explained: memorandum of association (external relations: name, office, objects, liability, capital); articles of association (internal rules: shares, meetings, directors' powers); statutory declaration of compliance (that legal requirements are met); list/consent of directors; prospectus (invites the public to buy shares); certificate of incorporation (gives legal existence); certificate of trading (allows the company to start business).
Explanation
Say what each document contains or does.