Sunday, 5 October 2014

Companies Act 1956: Articles of Association(AOA)

Every company must have AOA.
The articles of a company are the rules and regulations hence these are necessary for the working of a company.
According to companies act a format of Articles is given according to which the articles are framed by any company, this format is known as table A.
Company may fully adopt table A or it may frame its own articles, so the company may partly adopt table A and partly frame its own articles.
If the company does not want to adopt table A then the company must mention regarding the non applicability of Table A otherwise the table A will automatically apply.
The articles of a company are inferior to the memorandum and the articles cannot override memorandum.

Articles are binding upon the company as well its members but articles are not binding upon the outsiders.

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