Articles of Association
The internal regulations by which a company is controlled are outlined in the articles of association. They define the rights, authorities, and responsibilities of the company’s stakeholders. Everything from the conduct of board and general meetings to the appointment of directors is governed by the company’s articles.
Articles of organisation are required for businesses limited by guarantee and unlimited firms, although they are optional for companies limited by shares.
Articles of Association only apply to companies in Singapore that were incorporated before 3rd January 2016. Since then, companies incorporated after that time have to file a merged document of the Memorandum of Understanding and the Article of Association (M&AA), currently referred to as the Company Constitution.
The Articles of Association’s Impact
The articles of association serve as agreements between the firm and its members, as well as among the members. As a result, each member has a personal right to have the articles of association followed.
It’s worth noting that the articles of association are open to the public. Members of businesses limited by shares may choose to have a shareholder agreement in addition to the articles of association. A shareholder agreement is a separate, private contract between the members of a corporation.
Because some facts can be mentioned in the shareholder agreement rather than the articles of association, it helps to keep critical corporate details out of the public sight.