Articles of Association refer to the legal document that outlines the internal governance and regulations of a company or organization. It is one of the key documents that helps establish the constitution of a company, alongside the memorandum of association.
The document sets out important information regarding the company's purpose, objectives, and powers, as well as the rights, duties, and responsibilities of its members, directors, and shareholders. It typically includes details such as the company's name, registered office address, share capital, voting rights, dividend policies, procedures for appointing directors, and rules for conducting meetings.
The articles of association are created during the company's registration process and must conform to the relevant company laws and regulations in the jurisdiction where the company is established. While certain standard provisions are widely used, companies can also customize their articles to suit their specific needs and requirements.
The articles of association serve as a vital reference point for shareholders, directors, and company officers, ensuring clarity and consistency in decision-making and guiding the company's operations. They provide a comprehensive framework for the management of the company and help resolve any disputes or conflicts that may arise among stakeholders. Additionally, they can be amended by following the appropriate legal procedures, if required, to adapt to changing circumstances or to accommodate the company's growth and development. Overall, the articles of association play a significant role in defining and governing the internal structure and functioning of a company.
