What is the primary function of a company’s articles of association?
Correct answer: B. To regulate the company’s internal management
- A. To record the company’s annual profit
- B. To regulate the company’s internal management
- C. To provide evidence of every company debt
- D. To replace the certificate of incorporation
Explanation
Articles of association contain internal rules concerning matters such as meetings, directors and share procedures. They do not replace the certificate of incorporation or serve as an annual financial statement.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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