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Q.What is the purpose of Articles of Association ?

Jammu Kashmir JkboseJKBOSE Class 11 (Commerce) 2025Subjective· 3mImportance★★★★★est
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Articles of Association contain the internal rules governing a company's day-to-day management, and must not conflict with the Memorandum of Association or the Companies Act.

The Articles of Association (AOA) is one of the essential documents required for the incorporation of a company. While the Memorandum of Association defines the company's relationship with the outside world (its objects and scope of activity), the Articles govern the company's internal management and administration.

Purpose / contents of the Articles of Association:

  • Rules regarding share capital — issue, allotment, forfeiture and transfer of shares.
  • Rights, duties and voting powers of members/shareholders.
  • Procedure for calling and conducting general meetings (AGM/EGM) and board meetings.
  • Appointment, powers, duties and remuneration of directors and other officers.
  • Rules on dividends, accounts, audit and the company's common seal.
  • Procedure for winding up the company. …

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