James Chen, CMT is an expert trader, investment adviser, and global market strategist.
Updated June 06, 2024 Fact checked by Fact checked by Suzanne KvilhaugSuzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands.
Articles of Association are internal documents and rules to specify the regulations for a company's operations and define the company's purpose. It outlines how tasks are to be accomplished within the organization, including the process of appointing directors and handling financial records.
Articles of Association identify how a company issues shares, pays dividends, audits financial records, and provides voting rights. This set of rules can be considered a user's manual for the company. The content varies from jurisdiction to jurisdiction but this document holds a similar format globally and commonly outlines:
A company may or may not issue shares, but if they are found in the articles of association, they can be issued if needed.
A person, or group of people, starting a business will typically refer to a lawyer, accountant, or both for advice when setting up a company. The company will choose a name and define its purpose. The company is then registered at the state or federal level.
A company may issue shares to divide the company but it doesn't need to. The articles lay out how this can be done. The lawyer or accountant will typically work with the company directors to define how they structure the company.
The articles include the company directors, along with their personal information and a business address. Changes can be made to the Articles of Association with director(s) approval.
Articles of Association are internal documents that define a company's purpose as a business, key information such as the name, and how shares are structured. Articles of Incorporation are formal documents filed with a government body to form a corporation legally. Articles of incorporation include the firm’s name, street address, agent for service of process, and the amount and type of stock to be issued.
Articles of Organization are legal documents used to establish a limited liability company (LLC) at the state level.
A company's founders typically create its Articles of Association. Because it is an important document addressing the company's management and finances, the creators do so in consultation with lawyers, accountants, or both.
Articles of Association define what a company is and how it operates. This includes fundamental information such as the company's name, its founders and original shareholders, the purpose driving the company, how shareholders meetings are conducted, and how directors are hired.
Article SourcesSliding scale fees are a type of tax or cost that may change based on associated factors. They are designed to make it easier for low-income earners.
An incumbency certificate is a corporate document listing people who are authorized to enter into financial or legally binding transactions on a firm’s behalf.
A material weakness is when one or more of a company's internal financial and/or operational controls is found to be ineffective.
Attrition is the gradual but deliberate reduction in staff as employees retire or resign and are not replaced.
A takeover bid is a corporate action in which an acquiring company presents an offer to a target company in attempt to assume control of it.
The Porter Diamond Model is a model to explain the competitive advantage that nations or groups can develop based on certain factors.
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