Q.Fill in the blank: Successful operation of a company takes place under its ……… . (Articles [of Association] / Law)

The Articles of Association (AOA) are the rules for the internal management of a company. They lay down how the company's objects are to be achieved in day-to-day working, covering matters such as issue and allotment of shares, calls, forfeiture, transfer and transmission of shares, voting rights, meetings, appointment and powers of directors, borrowing, dividends, accounts and winding up.

The Articles are subsidiary to the Memorandum: they must not contradict or exceed anything stated in it, and they are subordinate to both the Memorandum and the Companies Act.

It helps to contrast the two documents:

• Objectives — the Memorandum defines the company's objects; the Articles are the rules of internal management for achieving them. …