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Q.What is Articles of Association ?

Jammu Kashmir JkboseJKBOSE Class 11 (Commerce) 2024Subjective· 3mImportance★★★★★est
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** The Articles of Association are the internal bye-laws / rulebook of a company, governing how it manages its own internal affairs, framed within the limits set by the Memorandum of Association.

The Articles of Association (AOA) is one of the essential charter documents required to register a company under the Companies Act. While the Memorandum of Association (MOA) defines the company's objects and the scope of its powers in relation to the outside world, the Articles of Association contain the detailed rules and regulations for the company's internal management.

Key points:

  • It covers matters such as the rights and duties of members and directors, procedures for conducting meetings, voting rights, issue and transfer of shares, appointment and removal of directors, borrowing powers, and the use of the company's common seal.
  • It is subordinate to the Memorandum of Association — any provision in the Articles that conflicts with the Memorandum, or with the Companies Act itself, is void.
  • It binds the company and its members to each other, acting as a contract between them regarding internal governance. …

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