ARTICLES OF ASSOCIATION

According to the Companies Act every limited liability company has to have articles of association.

According to the Companies Act, articles of association has to include:

1) Company name

2) Residency

3) Line of business

In addition articles of association often mentions:

4) The administration and its function

5) General meeting and its function

6) Redemption cause

7) Transfer of consent clause

 

When drafting the articles of association one should consider:

• Redemption clause (in a possible transfer situations, can the stocks be redeemed and how).

• Transfer of consent clause (is outsiders' right to purchase restricted).

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