Importance of Articles of Association of a Company– Explained!

According to section 26 of the Companies Act, the following companies must file their own articles along with the Memorandum of Association for registration:

(i) Private limited Companies

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

(ii) Companies limited by Guarantee

(iii) Unlimited Companies.

The Articles of Association of a private company must contain the prescribed restrictions. The Articles of guarantee company should state the number of members with which the company is to be registered and the articles of an unlimited company should state both the number of members as well as the amount of share capital (if any) with which the company is to be registered.

A public company limited by share capital may either have its own articles or may adopt Table A (as given in Schedule I) which contains a model set of Articles. In case such a company does not file its own articles, it is presumed that it has adopted Table A as its Articles.

Further, in case of company limited by shares if its articles are silent on any point, the regulations of Table A would apply unless the company has declared in its articles that Table A shall not apply. [Sec. 28 (2)]