What is Article of Association (AoA)?
Article of Association specifies the rules and regulations of a company’s internal affairs dealing with its management. It also defines the purpose of a company and outlines the ways in which the company should accomplish its tasks. The tasks include preparation of financial records, and management of financial records. In simple terms, an AoA is a user’s manual of an organization stating its purpose and strategies for the fulfillment of its long and short-term objectives. The main focus of an AoA is to give its readers, information regarding the methods used by the organization to accomplish its daily, quarterly, monthly, and yearly objectives. The document generally consists of the legal name of the company, address of the company, financial provisions of the company, purpose of the formation of the company, provisions related to the shareholders’ meetings, and equity capital of the company,
As per Section 2(5) of Companies Act of 2013, Articles refer to an original article of association of the company or an altered version that complies with the provision of 2013 Act, r/w Section 5 which defines AoA as any such document that contains rules and regulations for managing the company.
Forms of Articles of Association (AoA):
The forms of AOA in tables F to J have been mentioned under schedule I for companies ACT 2013. Here is the list of forms with their details:
- Table F: Form for a company limited by shares
- Table G: Form for a company limited by guarantee having a share capital
- Table H: Form for a company limited by guarantee that does not have a share capital
- Table I: Form for an unlimited company having a share capital
- Table J: Form for an unlimited company that does not have a share capital
Difference between Articles of Association (AOA) and Memorandum of Association (MOA)
The formation of a company is a complex activity including many formalities and procedures. It has different stages and in every stage of the formation of the company there lies a set of documents and pre-defined procedures, it has to fulfil for starting a business. Article of Association and Memorandum of Association are the two most important documents, an organization has to fill out for the formation of a company.
Contact Us