DEPARTMENT OF TECHNICAL

EDUCATION ANDHRAPRADESH
Name : N. Ramachandra Reddy
Designation : HCCP
Branch : D.C.C.P
Institute : GPW, Warangal
Year : I year
Subject : Business Organization
Subject Code : CCP – 104
Topic : Formation of Joint Stock Company
Sub Topic : Articles of Association
Duration : 50 mts
Teaching Aids : P.P.T ., Animation ,Photo

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Objectives

On the completion of this period, you would be

Able to know
 Meaning of Articles of Association

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Recap
 So far, we have learnt about
 Registration of Articles of Association
 Adoption of Table-A of Schedule - I of Indian
Companies Act

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Now, we will discuss

 Meaning of Articles of Association

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Meaning of Articles of Association

 A document containing the rules and regulations for

the internal working of a Company

 Contains the rules of procedure for the internal

control and management of the affairs of Company

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Articles of Association
 Second important document which the
promoters have to file with the
Registrar of Joint Stock Companies
 Determines the relationship among the
shareholders
 The relation between the shareholders and the
Company

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Articles of Association:

 Concerned with the procedural matters in the

routine conduct of the affairs of the Company
 Describe the different aspects of the business of
the Company

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Articles of Association

 Without the authority given in the Articles no step

can be taken by the shareholders or directors.

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Articles of Association:

 It is always subordinate to the Memorandum of

Association
 Cannot include any powers prohibited or excluded
by the Memorandum

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Articles of Association:

 Memorandum states the objects for which a

Company is formed
 Articles state the ways and means by which the
objects are to be achieved.

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Articles of Association:
 Articles regulate the rights and obligations of
members of the Company
 Govern the relationship between the company and
members

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Articles of Association:
 The memorandum defines the relationship of the
Company with the outside world
 The Articles of Association refer to the rules of
procedure in the internal control and
management of company’s affairs.

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Articles of Association:

 Articles of Association is a Public document

 Should be printed and divided into paragraphs and

consecutively numbered

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Articles of Association:
 Must be signed by each subscriber to the
Memorandum, i.e., by seven persons, in the presence
of at least one witness.

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Articles of Association

 The Articles of Association of a Private Limited

Company must be signed by two persons.

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Articles of Association:
 If A Public Limited Company may not prepare
special Articles of its own

 Can Adopt the Model Articles given in Table - A

of Schedule – I of Indian Companies Act.

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Summary

We have discussed

 Meaning of Articles of Association

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Quiz

(1). The Articles of Association defines

c) Relationship of the Company with the outside

world.
d) Relationship of the Company with the
Government.
e) Rules of procedure in the internal control and
management of Company.
f) None of the above

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(2). A Company can adopt Table – A for its.

c) Memorandum of Association
d) Prospectus
e) Resolution
f) Articles of Association

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Frequently Asked Questions

• State the meaning of Articles of Association

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Assignment
• Define Articles of Association ?

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