Article of association and its contents

by • 10/06/2011 • B.COM PART 1 Introduction to BusinessComments (0)736

Q5-What are article of association? What are its contents?

ARTICLE OF ASSOCIATION

Articles of association is a document explaining rules and regulation regarding the internal affirms of the company. According to Companies Ordinance,1984, every company registered by shares must prepare file articles of association with the registrar of the companies.

The contents of articles are as follows:

1.   Names and address of directors and their qualifications.

2.   Appointment, elections of directors.

3.   Term period of the position held by directors

4.   Name, address, qualification of the chairman and the managing directors.

5.   Name, addresses, qualification, appointment, election of auditor of the company.

6.   Allounces, salaries, fees etc. of the chairman, directors, and auditors.

7.   Name, addresses, qualification, salaries of the secretary

8.   Financial year of the company

9.   Procedure of audit to be followed

10. Prospectus of the company

11. Company meetings and procedure to call them.

12. Notice and agenda.

13. Minutes of the company.

14. Premium or discount on shares

15. Installments on shares.

16. Call-in-arrears on shares.

17. Forfeiture of shares.

18. Appointment and qualifications of and salary to managing agents.

19. Dividends.

20. Kinds of capital, shares, debentures.

21. proxy

22. Inventory valuation

23. Method of depreciation.

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