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.
20. Kinds of capital, shares, debentures.
22. Inventory valuation
23. Method of depreciation.