A document which contains the purpose
of the company & which clearly defines the duties and responsibilities of
its members. It is filed by the registrar of a company.
Contents of AOA:
Interpretation
& Definition – Various terms related with a company
shall be defined or interpreted
Business –
What type of business is done by the company
Shares –
The total amount of a company’s share capital, shares & the face value of the
shares.
Transfer
of shares – How the shares will be transferred. Process varies in
case of public limited & private limited company.
Transmission
of shares – Process which used in case of transferring shares(not
been operated for specific period of time) from one hand to another and incase
of seizing a members share.
General
Meeting – Includes AGM (Annual General Meeting) & EGM
(Extraordinary General Meeting). AGM is scheduled and happens every year but
EGM take places in case of emergency.
Notice
& Proceedings – Notice is the process & of notifying
the members of company and how it will be. Proceeding means the written work
schedule which usually followed by company.
Votes
of members – The votes, voting rights, & process of voting.
Directors –
Who are the directors and how they will be appointed
Powers
& Duties of directors – The degree of influence a director
can do & the duties of directors.
Common
Seal
– The common emblem of the company
Disqualification
of directors – When a director can be declared incapable
& based on what incidents a person cannot be declared as a director.
Proceeding
of directors – The work schedule of the directors
Filling
of vacancies – How the vacancies will be filled when the
tenure of a director finishes or a director lefts before the expiry of his or
her tenure.
Dividends
& Reserves – The profit comes from share is called
dividend. They are of: cash dividend & share dividend. The rest amount
(after giving dividend) kept as retained earnings or reserves.
Accounts
& Audits – How the accounts of the company will be
maintained & the provision for auditing the company’s account
Notice
for meeting – How a notice will be given if there is a
need for meeting
Secrecy –
How the secrecy of the company will be maintained
Indemnity – Provision
for the compensation to capitalize the liability
Arbitration –
A provision for arbitration in case of misunderstandings & conflicts
between the shareholders.
