Articles of association is an important document which lays down the various terms and conditions associated with a company’s operations. It is also known as articles of incorporation. The articles of association specify the company’s goal and purpose and mentions how all the work related to that purpose must be performed to reach those goals.The regulations may mention anything ranging from appointment of the members of the board of directors to how financial records will be tackled in the organization.
The document also defines the ways in which certain other tasks will be performed like issuance of stock shares, payment of dividends, voting rights and power of the management and also process of paying dividends to shareholders and so on.In this way, the articles of association includes the method in which these important and day-to-day activities of a company can be handled and it serves as a user’s manual to describe the process of completing these activities.
Sample Articles of Association Agreement
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