Asked by Isiwat Taiwo on Jun 13, 2024
Verified
The Model Business Corporation Act has made the inclusion of purpose clause in the articles of incorporation compulsory.
Purpose Clause
A section within a legal document or law that outlines the intent or goal of the document or statute.
Model Business Corporation Act
A model set of laws prepared by the American Bar Association that serve as a guide for state legislations to regulate corporate formation, operation, and dissolution.
- Understand the importance and requirements of articles of incorporation under the Model Business Corporation Act.
Verified Answer
CG
ciara grahamJun 16, 2024
Final Answer :
False
Explanation :
Under the Model Business Corporation Act (MBCA),the inclusion of a purpose clause in the articles of incorporation is optional.
Learning Objectives
- Understand the importance and requirements of articles of incorporation under the Model Business Corporation Act.