Question

Essay Type Questions:
What is Articles of Association? Enumerate its contents.

Answer 1

The Articles of Association is a document that specifies the regulations for a company's operations and defines the company's purpose. The document lays out how tasks are to be accomplished within the organization, including the process for appointing directors and handling of financial records.

Contents Of Articles Of Association

Articles usually contain provisions relating to the following matters-

1. Share capital including sub division thereof, rights of various shareholders, the relationship of these rights, payment of commission, share certificates,

2. Lien of shares

3. Calls on shares

4. Transfer of shares

5. Transmission of shares

6. Forfeiture of shares

7. Surrender of shares

8. Conversion of shares into stock

9. Share warrant

10. Alteration of capital

11. General meetings and proceedings thereat

12. Voting rights of members, voting by poll, proxies

13. Directors, including first directors or directors for life, their appointment, remuneration, qualifications, powers and proceedings of Board of directors’ meetings

14. Dividends and reserves

15. Accounts and audits

16. Borrowing powers

17. Winding up,