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Question
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes company’s relationship with outsiders.
Solution
Memorandum of association
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Document issued by public company inviting public to subscribe to its shares.
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Memorandum establishes the relationship between the Company and Members.
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Articles of Association can have provisions that contradict the Memorandum.
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Articles of Association is subordinate to Memorandum.
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Entrenched Articles cannot be easily altered.
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Prospectus can be issued by a private company.
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Justify the following statement.
The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.
