Contents of the Articles of Association
The document that contains all rules and regulations regarding daily activities and internal management of the company is called Articles of Association. It is a document that contains the purpose of the company as well as the duties and responsibilities of its members defined and recorded clearly.
The Articles of the Association is the second most important document in the maintenance of the Joint Stock Company. The common subject matters that are included in the Articles of Association are explained below:
Direction: It contains the rules and regulations of the company’s daily activities and management.
Information about the directors:
(a) The name, address, number, duty, responsibility, right, & power, the method of selection, period etc of the directors and managers.
(b) The worthiness of the number of shares, price, and enrolment of the directors.
Information regarding capital: an Authorized amount of capital, minimum payment of capital and rules and regulation about the alteration of the capital.
Information regarding shares:
(a) Classification of shares, total numbers, the price of each share and the method of making payment.
(b) The system of selling shares and the system of forfeiting of the shares.
(c) The charges and rules of transferring and selling of the shares.
Information regarding meeting:
(a) Imitation of the meeting, arrangement, and direct methods.
(b) Pulling system and the right of voting of the members.
Taking loans: It contains the power, ability and the company.
Dividend: It contains the dividend policy and the retain earnings policy of the company. From this the policy of reserved fund and capitalization.
Maintaining Accounts: It includes the method of maintaining the amounts, auditing systems, and the name & address of the auditors.
Recruitment and selection: It describes the method of recruitment and selection of the managers, executives, employee, personnel etc.
Seal: It holds the using system and security of the seal and logo.
Dissolution: The method and system of the dissolution of the company.
Above all, it can say that the Articles of Association contain all the aspects regarding the JJoint Stock Company from start to end.