Q.Which of the following documents defines the relationship between a company and outsiders, and states the scope of its lawful activities?

The relationship between outsiders and the company is defined in the Memorandum of Association (MoA), option (a).

A joint stock company is formed by registering two key documents. The Memorandum of Association is the company's charter or constitution. It states the company's name, registered office, objects, liability and capital, and it defines the scope within which the company can act. Because it fixes what the company may lawfully do, it settles the relationship of the company with the outside world — outsiders dealing with the company are deemed to know its contents (the doctrine of constructive notice).

• The Articles of Association are subordinate to the MoA and lay down the internal rules and regulations for managing the company — they govern the relationship between the company and its members and among the members themselves, not outsiders. …

The Board of Directors of a company is elected by its shareholders (members), so the correct option is (c).

In the Tamil Nadu HSC Commerce syllabus, a joint stock company is described as an association whose ownership is divided into shares held by shareholders, also called members. Because ownership is separated from management in a company, the shareholders do not run the business themselves.

• The shareholders (members), being the owners, elect the Board of Directors at the general meeting to manage the company on their behalf. …

The answer is option (a) Model of AOA (Articles of Association).

The Articles of Association (AOA) are the rules governing the internal management of a company. To make matters convenient, the Companies Act provides a ready-made model set of such rules known as Table A. A company limited by shares may either frame its own Articles or simply adopt Table A wholly or in part as its Articles. It is therefore a model of the Ar …

The correct answer is (c) Model of Articles of Association. Table A is the ready-made model set of Articles of Association provided in the Companies Act.

Every company needs two key documents:

• The Memorandum of Association (MoA) — the charter that defines the company's relationship with the outside world (name, objects, capital, liability).
• The Articles of Association (AoA) — the internal rules and regulations for the day-to-day management of the company (meetings, directors, dividends, share transfers, etc.). …