Wednesday, November 23, 2011

Article of Association


Article of Association is the document regulating the rights of its members in the company between themselves and detailing the manner in which the business of company shall be conducted. There are many business manners dealt with in article which are of relevant to the financial members or shareholders are as follows :-

o       Share capital and variation of its right.

o       Calls on share.

o       Transfer transmission and forfeiture of shares.

o       Alteration of capital

o       Notice and proceedings of meetings

o       Vote of members.

o       Appointment, powers, duties and removal of directors.

o       Annual accounts, profits and dividends.

o       Winding up of the company.

Company may alter its article by passing a special resolution and alteration or addition so made is as varied and can be altered in the same way as originally in the articles.

All articles can be altered and a provision depriving a company Its powers to alter its article is void. Alteration must be subject to condition contained in memorandum and must be for the benefit of the company as a whole. Any change in articles must be notified to registrar of companies.

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