Articles of Association | Meaning | Alteration of AOA

Articles of Association is a document that specifies the regulations for companies operations and also defines the company scope. The document shows how tasks are accomplished within organization, it also includes the method of appointing directors in company and also handles the monetary records.


Articles of association are thought of as a user's manual for a corporation , defining the purpose methodology for accomplishing necessary daily tasks of incorporated company.

The content and terms of the articles in AoA may vary by  every jurisdiction, Mostly it include provision of corporate name, and purpose, share structure of the company , and provisions of  shareholder meetings.

*Articles of Association

Understanding Articles of Association

Articles of association often identify the way during which a corporation will issue shares, pay dividends, audit financial records, and supply voting rights. This set of rules are often considered a user's manual for the corporate because it outlines the methodology for accomplishing the day-to-day tasks that has got to be completed.

While the content of the articles of association and therefore the exact terms used vary from jurisdiction to jurisdiction, the document is sort of similar throughout the planet and usually contains provisions on the corporate name, the company's purpose, the share capital, the company's organization, and provisions regarding shareholder meetings.

Company Name

As a legal entity, the corporate must have a reputation which will be found within the articles of association. All jurisdictions will have rules concerning company names. Usually, a suffix like "Inc." or "Ltd." must be wont to show that the entity may be a company. Also, some words that would confuse the general public , like "government" or "church," can't be used or must be used just for specific sorts of entities. Words that are offensive or heinous also are usually prohibited.

Purpose of the corporate 

The reason for the creation of the corporate must even be stated within the articles of association. Some jurisdictions accept very broad purposes—"management"—while others require greater detail—"the operation of a wholesale bakery," for instance .

Share Capital

The number and sort of shares that comprise a company's capital are listed within the articles of association. there'll always be a minimum of one sort of common share that creates up a company's capital. additionally , there could also be several sorts of preferred stock . the corporate may or might not issue the shares, but if they're found within the articles of association, they will be issued if and when the necessity presents itself.

 a corporation may or might not issue shares, but if they're listed within the articles of association, shares are often issued if and when needed.

Organization of the corporate 

The legal organization of the corporate , including its address, the amount of directors and officers, and therefore the identity of the founders and original shareholders, are found during this section. counting on the jurisdiction and sort of business, the auditors and legal advisors of the corporate can also be during this section.

Shareholder Meetings

The provisions for the primary general meeting of shareholders and therefore the rules which will govern subsequent annual shareholder meetings—such as notices, resolutions, and votes—are laid call at detail during this section.

Small Business Example of Articles of Association

A person, or group of individuals , starting a business will typically ask a lawyer, accountant, or both for advice when fixing a corporation .

The company will choose a reputation and define its purpose. the corporate is then registered at the state/province or federal level. Note that trademarking a reputation may be a different process.

A company may issue shares to divide up the corporate if it wishes, but it doesn't got to . The articles will lay out how this will be done. The lawyer or accountant will typically work with the administrators of the corporate , asking them inquiries to help find out how they want to grow and the way the corporate may find yourself being structured within the future.

Company directors are listed, along side their personal information. A address is additionally provided.

Changes are often made to the articles of association with director(s) approval.