Articles Of Association

AAA

DEFINITION of 'Articles Of Association'

A document that specifies the regulations for a company's operations. The articles of association define the company's purpose and lays out how tasks are to be accomplished within the organization, including the process for appointing directors and how financial records will be handled.

INVESTOPEDIA EXPLAINS 'Articles Of Association'

Articles of association often identify the manner in which a company will issue stock shares, pay dividends and audit financial records and power of voting rights. This set of rules can be considered a user's manual for the company because they outline the methodology for accomplishing the day-to-day tasks that must be completed.

RELATED TERMS
  1. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  2. Annual General Meeting - AGM

    A mandatory, public yearly gathering of a publicly traded company's ...
  3. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  4. Merger

    The combining of two or more companies, generally by offering ...
  5. Business

    1. An organization or enterprising entity engaged in commercial, ...
  6. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
Related Articles
  1. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  2. Getting To Know Business Models
    Entrepreneurship

    Getting To Know Business Models

  3. What Are Corporate Actions?
    Bonds & Fixed Income

    What Are Corporate Actions?

  4. What Owning A Stock Actually Means
    Investing Basics

    What Owning A Stock Actually Means

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center