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(a) Outline the purpose of a company’s ‘Articles of Association’ - Leaving Cert Business - Question 5 - 2010
Question 5
(a) Outline the purpose of a company’s ‘Articles of Association’. (b) List three items of information included in the ‘Articles of Association’. (i) (ii) ... show full transcript
Worked Solution & Example Answer:(a) Outline the purpose of a company’s ‘Articles of Association’ - Leaving Cert Business - Question 5 - 2010
Step 1
Outline the purpose of a company’s ‘Articles of Association’
Answer
The Articles of Association serve as the internal 'rule book' for a company, establishing the fundamental regulations and guidelines governing its operations. They outline how the company will function, including the rights and responsibilities of its shareholders and the management structure. Essentially, the Articles of Association detail the protocols under which the company operates, ensuring that all members are aware of the rules and enhancing organizational transparency.
Step 2
List three items of information included in the ‘Articles of Association’
Answer
- Capital: The amount of share capital and the different classes of shares.
- Regulations re Meetings: Procedures for company meetings, including how to call meetings and notice requirements.
- Directors: Powers and duties of directors, including the processes for appointing and removing directors.