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Encyclopedia Britannica



ARTICLES OF ASSOCIATION

This article appears in Volume V02, Page 685 of the Encyclopedia Britannica.

Encyclopedia Britannica - Main :: ARN-AUD
ARTICLES OF ASSOCIATION , in
English
  company law, the regulations for the internal management of a
joint
  stock company registered under the Companies Acts. They are, in fact, the terms of the partnership agreed upon by the shareholders among themselves. They regulate such matters as the transfer and forfeiture of shares, calls upon shares, the appointment and qualification of directors, their
powers
  and proceedings, general meetings of the shareholders, votes, dividends, the keeping and audit of accounts, and other such matters. In regard to these
internal regulations the legislature has left the company free to adopt whatever terms of association it chooses. It has furnished in the schedule to the Companies Act 1862 (Table A), a model or specimen set of regulations, but their adoption, wholly or in
part
 , is optional; only if a company does not
register
  articles of its own these statutory regulations are to apply. When, as is commonly the case, a company decides to have articles of its own framing, such articles must be expressed in
separate
  paragraphs, numbered arithmetically, and signed by the subscribers of the memorandum of association. They must also be printed, stamped like a deed, and attested. When so perfected, they are to be delivered, with the memorandum of association, to the registrar of
joint
  stock companies, who is to retain and
register
  them. The articles of association thereupon become a public document, which any person may inspect on payment of a fee of one shilling. This has important con-sequences, because every person dealing with the company is presumed to be acquainted with its constitution, and to have read its articles. The articles, also, upon registration, bind the company and its members to the same extent as if each member had subscribed his name and affixed his seal to them. (See also MEMORANDUM OF ASSOCIATION; COMPANY; INCORPORATION.)
In the United States, articles of association are any
instrument
  in writing which sets forth the purposes, the terms and conditions upon which a
body
  of persons have united for the
prosecution
  of a joint enterprise. When this
instrument
  is duly executed and filed, the law gives it the force and effects of a charter of incorporation.


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