Articles of Association
Definition - What does Articles of Association mean?
Articles of association are legal terms that are agreed on between the owners of a business, which dictate the operation of the business. These state the purpose of the company and list all legal obligations bestowed upon its members.
Justipedia explains Articles of Association
Articles of association will also state how stock is to be issued and at what limit. Additionally, they will list all terms that are binding in nature between the company and the management or board of directors. Finally, they will explain the way in which day-to-day operations will be carried out.
The official document must be filed with the company registrar and creates a legally binding understanding of why the business was brought to fruition.