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Company administration

Articles of association

The articles of association:

 set out the manner in which the company is to be governed and

 regulate the relationship between the company, its shareholders and its
directors

Articles contain rules on:

 appointment and dismissal of directors

 powers, responsibilities and liabilities of directors

 directors’ meetings

 members’ meetings

 members’ meetings

 payment of dividends

 communication with members

 issue of shares

 documents and records

Legal effect is that they form a contract:

 between the company and its members

 between the members themselves

They do not bind the company to third parties.

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