Articles of Association: A Guide to Governance

The Articles of Association (AoA) governs a company’s internal operations, complementing the Memorandum of Association (MoA). It defines rules for managing operations, decision-making, shareholder and director responsibilities, share issuance, and dividend distribution. The AoA ensures legal compliance, transparency, and a clear governance structure. It acts as a contract between the company and its members, preventing disputes and boosting investor confidence. A well-drafted AoA allows for flexibility in adapting to changes while fostering good governance and protecting stakeholder interests.