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What are Articles of Association (AOA) and why are they important for a company?

by | Jun 2, 2023 | FinTech Articles | 0 comments

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Important keywords: Article of Association, Company rules and regulations, Shareholder meetings, Special resolution, Business setup.

Understanding Articles of Association

Articles of Association are a document that outlines the rules and regulations for the operation of a company. It describes the company’s purpose, how it will be run, and the roles and responsibilities of its directors and shareholders.

Contents of Article of Association

The contents of Article of Association include the company’s name, purpose, share capital, and rules for shareholder meetings. It also outlines how the company will issue shares, pay dividends, and audit its financial reports.

Alteration of Article of Association

Changes can be made to Article of Association with a special resolution, but they must not be illegal or breach any contracts with third parties. A copy of every special resolution must be sent to the Registrar within 30 days of approval.

Example of Article of Association

When starting a business, seeking advice from a lawyer or accountant is recommended. The company’s purpose and name are selected, and its directors and their personal information are listed in the Article of Association. The Article of Association can be changed after approval from the directors.

Bullets:

  • Article of Association are a document outlining a company’s rules and regulations.
  • They describe the company’s purpose, how it will be run, and the roles and responsibilities of its directors and shareholders.
  • Contents of Article of Association include the company’s name, purpose, share capital, and rules for shareholder meetings.
  • Changes to Article of Association must not be illegal or breach any contracts with third parties.
  • Seeking advice from a lawyer or accountant when starting a business is recommended.

Questions and answers for the related article:

Q: What is the purpose of Article of Association?

A: The purpose of Article of Association is to outline the rules and regulations for the operation of a company.

Q: What does Article of Association include?

A: Article of Association include the company’s name, purpose, share capital, and rules for shareholder meetings.

Q: Can Article of Association be changed?

A: Yes, Article of Association can be changed with a special resolution, but changes must not be illegal or breach any contracts with third parties.

Key takeaways:

  • Article of Association are important for outlining a company’s rules and regulations.
  • They include the company’s name, purpose, share capital, and rules for shareholder meetings.
  • Changes to Article of Association must not be illegal or breach any contracts with third parties.

Conclusion:

Article of Association are a crucial document for any company, as they outline the rules and regulations for its operation. Seeking advice from a professional is recommended when setting up a business and creating Article of Association.

Read More: Notification No. 53/2018 – Central Tax: Seeks to make amendments (Eleventh Amendment, 2018) to the Central Goods and Services Tax Rules, 2017. This notification restores rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018.

Web Stories: Notification No. 53/2018 – Central Tax: Seeks to make amendments (Eleventh Amendment, 2018) to the Central Goods and Services Tax Rules, 2017. This notification restores rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018.

Download Pdf: https://taxinformation.cbic.gov.in/

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