The articles of association in India are a set of rules and regulations that govern the internal affairs of a company. It lays out the rights and obligations of the shareholders, directors, and company officers.
The articles of association are a document that is required to be registered with the Registrar of Companies at the time of incorporation of a company. They are essentially a contract between the company and its members, and they define the powers and responsibilities of each party.
The articles of association typically cover a wide range of topics, including:
1. Share capital: The articles of association will specify the amount of share capital that the company is authorised to issue and the types of shares that can be issued.
2. Shareholder rights: This includes voting rights, dividend entitlements, and procedures for meetings.
3. Board of directors: The articles will specify the number of directors, their appointment procedure, and their powers and duties.
4. Company officers: The articles will detail the appointment and powers of company officers such as the CEO, CFO, and company secretary.
5. Meetings: The articles will detail procedures for holding meetings such as board meetings, general meetings, and extraordinary meetings.
6. Winding up: The articles will detail the procedures for winding up the company in the event of insolvency or liquidation.
Overall, the articles of association provide a framework for the proper governance of a company and help to ensure that all stakeholders are aware of their rights and responsibilities.
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