The correct answer is: Both A and B.
The powers of the Board of Directors are mentioned in the Articles of Association. The Articles of Association are a document that sets out the rules and regulations of a company. They are usually drafted by the company’s lawyers and are then approved by the shareholders. The Articles of Association will usually include a section that deals with the powers of the Board of Directors. This section will usually state that the Board of Directors has the power to borrow money on behalf of the company.
The Memorandum of Association is another document that sets out the rules and regulations of a company. It is usually shorter than the Articles of Association and is not as detailed. The Memorandum of Association will usually include a section that deals with the objects of the company. This section will usually state that the company’s objects include the borrowing of money.
Therefore, the powers of the Board of Directors to borrow from the bank are mentioned in both the Articles of Association and the Memorandum of Association.
Here is a brief explanation of each option:
- Option A: Article of Association
The Articles of Association are a document that sets out the rules and regulations of a company. They are usually drafted by the company’s lawyers and are then approved by the shareholders. The Articles of Association will usually include a section that deals with the powers of the Board of Directors. This section will usually state that the Board of Directors has the power to borrow money on behalf of the company.
- Option B: Memorandum of Association
The Memorandum of Association is another document that sets out the rules and regulations of a company. It is usually shorter than the Articles of Association and is not as detailed. The Memorandum of Association will usually include a section that deals with the objects of the company. This section will usually state that the company’s objects include the borrowing of money.
- Option C: Special Resolution
A special resolution is a type of resolution that requires a higher majority of votes than a normal resolution. In order to pass a special resolution, the company’s shareholders must vote in favour of the resolution by a majority of at least 75%. Special resolutions are usually used to make major changes to a company, such as changing its name or structure.
- Option D: Both A and B
The powers of the Board of Directors to borrow from the bank are mentioned in both the Articles of Association and the Memorandum of Association.