Article of association

Company is a formal firm of organization that is established according to predefine rules regulations,law of concern government. It is established to perform the function of business like production, demand forecasting, supplying, trading, etc at large scale on global way. There are many documents are essential for the establishment of company. These document are Article of Association, Memorandum and so on. Every document is essential and play an important role for the performing the function of business. Among all Article of Association is also an important document that is essential to play an important role in the performing the function of business. 
In other words we can say that Article of Association is a primary document in which company explains nature, purpose, objective and function of company. It is submitted before government to establish any company in India. It contains many category, sub category, column in which the details of company is mentioned. It is also called the Constitution of company that explains the appointment of director. The method of financial transaction recording,the norms of issue shares, the process of issuing dividend, the voting right of shareholders and other concerned things. It also explains the day to day activities, actions of organization. It is permanent nature but if the shareholders of company want to change any issue they can change according to section of 31,company act 1956. It may also change the form of company like public company becomes private company and private company change into public company. 

Importance of Article of Association:
There are many importance of Article of Association. These importance are as below-
1. It's matter issues is accepted by all members of company. So, all members of company is bounded with Article of Association. 
2. If the member of company is bounded by organization then organization is also bounded with the member of company. 
3. It explains the nature, purpose, function of company. So, any person who may join company, they know all things about company. 
4. Other organization, government that want to know about company, they may know with the help of Article of Association. 

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