ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation
Which document, filed when a company is formed, sets out the internal rules governing how the company is run, such as the powers of directors and procedures for meetings?
The articles of association set out the internal rules of a company, including the powers of directors and how meetings are held. The certificate of incorporation only proves the company exists, while a prospectus invites investors and the annual report reports performance.
- AArticles of associationCorrect
- BProspectus
- CCertificate of incorporation
- DAnnual report
Explanation
The articles of association are the company's internal rulebook covering directors' powers and shareholder meetings. The certificate of incorporation is evidence the company exists. A prospectus invites investment and an annual report presents financial results.
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