Importance of AOA

Constitution of the company The incorporation of the company, is infact the registration of its Memorandum, and its Articles and the certificate of incorporation is granted on the basis of these two documents. Main document which is required for forming a company. Nature of a contract between the company and its employees.

CONTENTS/CLAUSES OF MOA
The articles of Association of a company sets out the regulations of the company, therefore it may adopt all or any of the regulations contained in Table A of the First Schedule. The Table A of the first schedule has the regulations covering the following areas: 1. Business clause as to when the business is going to start, 2. The transfer of shares, 3. Alteration in share capital
4. Procedure for voting

5. Powers and duties of directors 6. Proceedings of directors 7. The qualification and dis-qualification of directors 8. Accounts 9. Winding up 10. Rules regarding General meetings

Registration of AOA
Procedure provided for the registration of AOA in Companies Ordinance 1984. If the Company is limited by shares, there may be along with the MOA Articles must be signed and got registered by the Company.

In case of Company Limited by shares and by guarantee, it is mandatory requirement that AOA is registered along with MOA.

OTHER REQUIRMENTS
The AOA shall be:

 Printed Divided into paragraphs, It must be numbered Signed by each subscribers

Effects of AOA
The AOA have certain legal effects to the member and the company: Binding on members in relation to the company. Binding on company in relation to members. Binding on members inter se(in their relation to one another). Not binding on company in relation to outsider. Alteration of AOA

The AOA of a company may be altered but subject to the provisions of: Companies Ordinance Conditions contained in the MOA Procedure of Alteration Step 1.the alteration is to be discussed in BOD and approved through a resolution. Step 2.days notice along with the copy of proposed special resolution is to be sent to the members. Step 3. resolution is passed in general meeting supported by majority. Step 4. copy of the resolution is to be filled with the registrar within 15 days. Step 5. Approval is accorded from the registrar. And thereafter the registrar concern issues filing certificate. Approval of alteration According to Ordinance it is necessary to obtain approval of the Commission of any alteration made in the AOA. Upon receiving an application for confirmation the commission will send a notice to; Every class of members who are effected by such alteration.