Articles of association:
Definition: The articles of association are the regulations or by laws which govern the internal organization and conduct of a company.Articles of association are a legal document second in importance to memorandum of association. In other words, it is concerned with the procedural matters in the routine conduct of the affairs of the company.
The articles of association, describe the powers of the directors, other officers, and of the shareholders as to voting etc. It also describes the mode and form in which changes in t he internal regulation of the company, May from time to time, be made. The articles of association cannot go beyond the limit set by it.A public company limited by shares may chose to adopt the companies' ordinance which contains model rules and regulations. However for companies limited by guarantee and unlimited companies, the registration of articles of association is compulsory.
Contents of articles:
1- Amount of shares, capital, value and types of shares.
2- Rights of each class of shareholders regarding voting, dividend, return of capital.
3- Rules regarding issue of shares and debentures.
4- Procedures as well as regulations in respect of making calls on shares.
5- Manner of transfer of shares.
6- Declaration of dividends.
Definition: The articles of association are the regulations or by laws which govern the internal organization and conduct of a company.Articles of association are a legal document second in importance to memorandum of association. In other words, it is concerned with the procedural matters in the routine conduct of the affairs of the company.
The articles of association, describe the powers of the directors, other officers, and of the shareholders as to voting etc. It also describes the mode and form in which changes in t he internal regulation of the company, May from time to time, be made. The articles of association cannot go beyond the limit set by it.A public company limited by shares may chose to adopt the companies' ordinance which contains model rules and regulations. However for companies limited by guarantee and unlimited companies, the registration of articles of association is compulsory.
Contents of articles:
1- Amount of shares, capital, value and types of shares.
2- Rights of each class of shareholders regarding voting, dividend, return of capital.
3- Rules regarding issue of shares and debentures.
4- Procedures as well as regulations in respect of making calls on shares.
5- Manner of transfer of shares.
6- Declaration of dividends.
