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Articles of Association (AOA)

The Articles of Association (AOA) of a corporation are a key declaration of the corporation’s nature, purpose, and goals that, combined with the Memorandum of Association, make up the corporation’s constitution. These must be presented with the incorporation application. They spell out the board of directors’ responsibilities, the type of business to be conducted, and the ways through which shareholders can exert control over the board of directors. Articles of Association AoA of Company – Full Form.

 

Details included in AOA

If a firm’s constitution has any constraints on its purposes, the articles of association will include such restrictions. The Articles of Association also contain the following information:

• Valuation of intellectual property, for example, the values of one partner’s IPR and, similarly, the valuation of another partner’s real estate
• The appointment of directors – which reveals if a shareholder has a dominant position or if all donors are treated equally.
• Whether the board governs or a founder manages, management choices must be made.
• Assignment rights of the founders or other members of the firm do not affect the transferability of shares.
• Chairman’s particular voting privileges, as well as how he or she is elected
• The dividend policy – when profits are made or not, a percentage of earnings is declared.
• Winding up – the terms and conditions, as well as a notification to members
• Know-how exclusivity and the founders’ agreement, as well as penalties for disclosure
• A founder’s first right of refusal – purchasing rights and a counter-bid. Articles of Association AoA of Company – Full Form.

FAQ

What do you mean by the Articles of Association?

The articles of association are legal documents that lay out the rules for a company’s activities and define its mission. The paper outlines down how activities will be completed inside the business, including how directors will be appointed and how financial records will be handled.

 

What are AoA and its contents?

Since it is pretty apparent, and Articles of Association must comprise all of the information about who holds power between directors, officers, shareholders, and others, who has the right of vote and veto, the nature and form in which the company’s primary business is to be carried out, the structure for the company’s internal corporate governance, the means of internal review by which executive decisions have to be made, and the bodies in which authority to make such decisions in the company. Aside from that, the company’s members’ rights and responsibilities, as well as their names and titles

 

How do I download articles of association?

Simply go to Companies House and get the articles from their website. For already-registered businesses, the procedure is straightforward: visit Companies House to do so, or employ the services of a quick and effective company formations service if you registered with a formation’s agency.

 

What do articles of association include?

• Share capital
• Lien of shares.
• Calls on shares.
• The process for the transfer of shares.
• Transmission of shares.
• Forfeiture of shares.
• Surrender of shares.
• Process for conversion of shares to stocks.
• Share warrants
• Alteration of capital: Increase, decrease, or rearrangement of capital
• General meetings and proceedings
• Voting rights of members
• The appointment, remuneration, qualifications, powers of directors, etc.
• Proceedings of the boards of directors’ meetings
• Dividends and reserves
• Accounts and Audits
• Borrowing Powers of the company
• Provisions relating to the winding up of the company. Articles of Association AoA of Company – Full Form.