What Is Article Of Association?

As per section of 2(5) of the Companies Act, 2013 “articles means articles of association of a company as originally framed or altered from time to time or applied in pursuance of any previous company law or of this Act.”

Generally, it is a document which contains the rules and regulations for the management of the company. In the Companies Act, there is a certain format of Articles of Association which is already provided in the form of Table F to Table J but the companies can adopt either provided table or can draft their own article of association. This is drafted and submitted for the approval to the Registrar at the time of company registration. No company can operate its activity without the Article of Association, as it is the main document of the company it contains the bye-laws related to the company activity. The company cannot do any activity beyond the power of its Article of Association; if the business activity is not mentioned in the article then first it needs to alter the same with the approval of the majority shareholder in the general meeting.

Alteration Of Article Of Association

Every company can alter its article of association any time during its tenure but only after the prior approval of the majority shareholders by passing required resolution in the general meeting of the company and the same alteration shall also have to be submitted the Registrar in whose jurisdiction the registered office of the companies fall along with the documents and requisite fees.   An article of association is a very important document of the company no company can be registered or operate its function or management without the Article of Association and it is very important that it should not violate any provision of  Companies Act or any other law.

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