Articles of Association

“An article of association is a document explaining the rules and regulations regarding the internal affairs of the company”.

In other words it is a series of rules and regulations according to which company runs its business. If company does not prepare and file its own article, then the Table –A of the company ordinance would apply.

Contents of article of association:

The contents or article of association are as follow.

• The names and address of the directors and chairman.
• The methods of appointment or election of directors and chairman and time period of their position.
• Names and address of the auditors of the company.
• The method of electing company auditors.
• Salaries, allowances, fees etc for the chairman, directors and auditors.
• The names, address, qualification, salary of the company secretary and method of appointment.
• Financial year of the company.
• Procedure of audit to be followed.
• Prospects of the company.
• Company meetings and procedure to call them.
• Notices and agenda.
• Minutes of the company.
• Information about company shares, debentures etc.
• Kinds of company capital.
• Method of depreciation and inventory valuation etc.