TeachMeFinance.com - explain Memorandum of association
Memorandum of association -- London term used in connection
with the incorporation of companies ; it means the charter
of the company, which defines its powers and states its objects.
The Secretary's Manual on the Law and Practice of Joint-
Stock Companies quotes a statement by Lord Justice Bowen
which thus distinguishes the Memorandum and Articles of
Association : "The Memorandum contains the fundamental
conditions upon which alone the company is allowed to be incorporated.
They are conditions introduced for the benefit of
the creditors and the outside public as well as shareholders.
The Articles are the internal regulations of the company."
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