What are articles of association?

0
2K

Articles of association are written rules that outline how a company should be managed and governed. These rules are mutually agreed upon by the company's shareholders, directors, and secretary. Companies have the option to adopt 'model articles,' which are the standard rules for running a company, or to create their own custom articles. If a company opts to draft its own articles, it is not eligible for online registration.

 

What is the purpose of articles of association?

Under the Company Act, when you register a company, it is required to have both articles of association and a memorandum of association.

Articles of association delineate the regulations for managing, governing, and owning the corporation. This includes specifying the responsibilities and powers of the directors and determining the extent of influence shareholders wield over the board of directors.

This is crucial as it can prevent conflicts within the company and instill confidence among shareholders in the decisions made by the directors.

For instance, articles of association can ensure that directors take certain actions without requiring shareholder approval and prevent shareholders from making unreasonable demands of the directors.

Articles of association are considered public documents. Should shareholders wish to expand on the articles of association without disclosing additional information to the public, they also have the option to create a shareholders' agreement.

Search
Sponsored
Categories
Read More
Other
Exploring the Best Offices in BGC: Your Ultimate Guide
Introduction Welcome to the bustling and vibrant business district of Bonifacio Global City...
By Sales Rain 2025-01-03 11:57:09 0 260
Art
Call Girls in Model Town∭-9999102842-∭ EsCorts ServiCe in Delhi/Ncr
Call VINAY, – 9999102842 Delhi Escorts – We offer best in class Call girls. escort...
By Munirka Saket 2021-07-14 12:14:11 0 2K
Health
https://www.facebook.com/ManUp.Gummies.SouthAfrica.Performance/
ManUp Gummies South Africa https://www.facebook.com/ManUp.Gummies.SouthAfrica.Performance/...
By Kajal Kashyap 2024-09-23 14:32:55 0 451
Other
Why Invest in the cryptocurrency exchange development?
As Cryptocurrencies began to rise, the future world of finance has been noticed as a major...
By Lisa Stanley 2024-03-06 13:35:56 0 1K
Health
Where to Find the Best Homeopathic Treatment in India?
If you're exploring alternative healthcare options in India, homeopathy stands out as a popular...
By Dharma Homoeopathy 2024-05-15 13:30:57 0 906