What is the role of the memorandum in company documentation?

The memorandum serves as a foundational document that outlines the external summary of a company's structure and purposes. It typically includes essential information such as the company's name, registered office, objectives, and powers. This external perspective is crucial as it helps stakeholders, including investors and regulatory bodies, understand the company's scope of activities and its reason for existence.

While other documents might address shareholder agreements, governance procedures, or financial disclosures—none of these functions align with the primary purpose of the memorandum. The memorandum acts as a point of reference that clarifies the relationship between the company and the outside world, thereby providing a clear framework for operations and expectations from external parties.