Chartered Institute of Stockbrokers (CISI) Professional Practice Exam

What are the two documents required to form a company?

1. Trading agreement and Partnership deed

2. Articles of Association and Memorandum of Association

3. Company bylaws and Financial statement

4. Annual report and Incorporation certificate

The correct answer is: Articles of Association and 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, objectives, registered office address, and the amount of share capital. This document acts as a charter for the company, defining its relationship with the outside world and the scope of its activities. On the other hand, the Articles of Association detail the internal governance and management structure of the company, including the rights and responsibilities of its members, the rules for conducting business, and the procedures for making decisions. Essentially, this document outlines how the company will operate. Together, these two documents form the core legal backbone of a company. They are required during the registration process to ensure that the entity is formally recognized and operates within the legal framework provided by company law.