The charter of a company which defines the limitations and powers of the company is called
A
Memorandum of Association
B
Articles of Association
C
Statutory Report
D
Certificate of Commencement
Correct Answer: Memorandum of Association
The memorandum of association of a company is the charter and defines the limitation of the power of the company established under Companies Act. Memorandum of Association is the most important document of a company. It states the objects for which the company is formed. It contains the rights, privileges and powers of the company. Hence it is called a charter of the company. It is treated as the constitution of the company. It determines the relationship between the company and the outsiders.