Question

Write notes on

1. Articles of association

2. memorandum of a company

3. Ethics in business

Answer 1

1. Articles of association can be thought of as a user's manual for a company, defining its purpose and outlining the methodology for accomplishing necessary day-to-day tasks.

While the content and terms may vary according to jurisdiction, articles of association generally include provisions on the company name, its purpose, the share capital, the company's organization, and provisions concerning shareholder meetings.

2. A company's memorandum of association contained an objects clause, which limited its capacity to act. When the first limited companies were incorporated, the objects clause had to be widely drafted so as not to restrict the board of directors in their day to day trading. In the Companies Act 1989, the term "General Commercial Company" was introduced which meant that companies could undertake "any lawful or legal trade or business."

3. Ethics are the rules or standards that govern our decisions on a daily basis. Many consider “ethics” with conscience or a simplistic sense of “right” and “wrong.” Others would say that ethics is an internal code that governs an individual's conduct, ingrained into each person by family, faith, tradition, community, laws, and personal mores. Corporations and professional organizations, particularly licensing boards, generally will have a written “Code of Ethics” that governs standards of professional conduct expected of all in the field. It is important to note that “law” and “ethics” are not synonymous, nor are the “legal” and “ethical” courses of action in a given situation necessarily the same. Statutes and regulations passed by legislative bodies and administrative boards set forth the “law.” Slavery once was legal in the US, but one certainly wouldn't say enslaving another was an “ethical” act.