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An article of association (AOA) is a legal document that sets out the rules and regulations governing the internal management and operations of a company.
The Articles of Association (AoA) are a crucial document that outlines the rules and regulations that govern a company's internal affairs.
Some benefits of having well-written Articles of Association are:
★ Clear Governance: The AoA outlines the roles, powers, and responsibilities of the directors, shareholders, and company officers, which ensures that everyone involved in the company understands their duties and obligations.
★ Protection of Shareholders: The AoA also defines the rights of shareholders, such as their voting rights, dividends, and transferability of shares. This protects the shareholders' interests and ensures fair treatment.
★ Clarity of decision-making: The AoA outlines the procedures for making decisions, such as the number of votes required to pass a resolution. This ensures that the decision-making process is transparent and fair.
★ Flexibility: The AoA allows companies to tailor their internal affairs to their specific needs, such as the number of directors, appointment of officers, and meetings. This provides flexibility and allows for customization as the company grows.