Articles of Association

Articles of Association

• Is prepared by the founders of the company or their representatives.
• Is sent to the Registrar of companies, together with the memorandum of association for approval.
• Contains the rules and regulation with regards to:
• the rights, duties and powers of the directors.
• The method of electing directors.
• The number of directors.
• The procedure for calling an Annual General Meeting as well as other shareholder meetings.
• The voting rights of each class of shareholders.
• The issue, transfer and forfeiture of shares.
• The method of dealing with any alterations in the amount of share capital.
• The method of distributing profits and carrying out company accounts audits.
• The borrowing powers of the company.
• Shows the name and address of the company.

Importance:

• lays down the rules and regulations for the internal affairs of the company.

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