Chartered Institute of Stockbrokers (CISI) Professional Practice Exam

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Which two documents are needed to form a company?

Certificate of Incorporation, Articles of Association
Articles of Association, Memorandum of Association
Memorandum of Incorporation, By-Laws
Partnership Agreement, Company Regulations

The correct answer is: Articles of Association, Memorandum of Association

To form a company, the two essential documents required are the Articles of Association and the Memorandum of Association. The Memorandum of Association serves as a foundational document that outlines the company's name, location, objectives, and details about the company’s liability and share capital. It effectively sets the parameters within which the company will operate. The Articles of Association, on the other hand, govern the internal management and administrative rules of the company. This document specifies the duties and rights of the shareholders, directors, and other key stakeholders, establishing how decisions are made and what procedures must be followed within the company. Together, these documents provide the legal framework necessary for a company to be incorporated and operate within the laws of the jurisdiction in which it is established. Other options such as Certificate of Incorporation, By-Laws, Partnership Agreement, and Company Regulations are either regulatory requirements or documents associated with businesses that do not pertain to the primary formation of a company as stipulated by standard company law.