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Need or Importance of Articles of Association

Need or Importance of Articles of Association


After the memorandum, the memorandum is the second important document of the company which has to be submitted to the Registrar of Amalgamation. In these articles, the rules related to the company’s internal management system are mentioned. The importance of the Articles can be clarified under the following points:


(1) Essential for Registration – Unlimited liability


Preparing the Articles of Association for the registration of a company, a private company and a company limited by guarantee.


required to be submitted and submitted to the Registrar. but a company with limited liability by shares


It is not mandatory to prepare the Articles of Association. In the absence of this, the rules given in ‘Table A’


will be applicable. (2) Helpful in achieving object – The objectives of a company are mentioned in the Councilor’s Seemaanium. The means, methods and methods used for the attainment of these objectives are mentioned in the articles of the company. Thus, the Articles of Association help in the internal management of the company.


Helpful in achieving objectives.


Articles are helpful in the management and operation of the company. In fact, in the articles of the company itself


The rules and bye-laws related to the internal management system are mentioned. internal to


There is convenience in managing management.


(4) Mutual Agreement – The Articles of Association between the company and the members


There is a middle curve that binds both the parties together. (5) Regulation of Activities According to many provisions of the Companies Act, a company can do many things only when it is empowered to act by the Articles. It is clear from this that the Articles of Association regulate the activities of the company to a certain extent.


(6) Public Document – The Articles of Association is a public document, it is assumed that every party dealing with the company has proper knowledge of this document.


(7) Subsidiary-Articles in business capacity is a public document of the company as well as a business document, and is defined in such a way as to assist its company in attaining reasonable business capacity.

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