Description

What are articles of association?

Articles of association are a document that describes the internal rules of a company, as opposed to an owners’ agreement that only applies to the signed parties. Articles of association are drawn up in connection with the establishment of a company and contain the most important information. However, it is possible to change a company’s articles of association in connection with changes to, for example, share capital, company name, purpose or management model. Only the company’s owner can decide to change the company’s articles of association. In order for the new articles of association to come into force, a general meeting must be held where the owners agree on the new articles of association and have them signed.

Why are they important?

Articles of association are important because they contain the most important information about the company. Articles of association are a document with rules for how the company should act. Here, it can be agreed how the company’s profits should be distributed, how long the deadline is for, for example, payment of share capital. What management structure is used. Voting rights are also determined by the articles of association. Who has the right of first refusal, etc.