Q.What is meant by "Articles of Association"?

Once a company knows what business it may do, it still needs its own rule book for running that business day to day. …

The Articles of Association are the second essential document a company files at the time of registration, governed by Section 5 of the Companies Act, 2013. Where the Memorandum of Association fixes what the company may do and defines its relationship with the outside world, the Articles lay down how the company will actually be managed internally — covering matters such as the rights of different classes of shareholders, the making of calls and the forfeiture and transfer of shares, the conduct of general meetings, the appointment and powers of directors, borrowing powers, and the procedure for dividends and winding up. The Articles are always subordinate to the Memorandum and to the Act itself; a public company limited by shares may even adopt the Act's own model Articles (Table …

Students often use "Memorandum" and "Articles" interchangeably. The Memorandum defines the company's scope of business and relationship with outsiders; the Articles govern …