New Articles of Association are required when incorporating a company in the United States or when substantially restructuring an existing company's governance framework. This document serves as the company's constitution, detailing everything from basic corporate information to complex operational procedures. It must align with both federal requirements and state-specific corporation laws, particularly in states like Delaware where many businesses incorporate. The Articles define shareholder rights, board responsibilities, share structures, and meeting procedures, forming the backbone of corporate governance.
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Key Requirements PROMPT example:
New Articles Of Association
"I need New Articles of Association for a Delaware-incorporated technology startup with two classes of shares (common and preferred), including specific provisions for pre-emptive rights and a detailed section on board composition for venture capital investors."
1. Name and Type of Company: Specifies the company name and whether it's a private or public company
2. Registered Office: States the official registered address of the company
3. Purpose: Defines the business objectives and permitted activities of the company
4. Share Capital: Details the authorized share capital, classes of shares, and their rights
5. Directors and Management: Outlines the board structure, appointment process, and powers
6. Meetings: Rules for conducting shareholder and board meetings
7. Voting Rights: Specifies voting procedures and rights of different share classes
1. Pre-emptive Rights: Additional provisions giving existing shareholders first right to purchase new shares - typically used for private companies wanting to control ownership
2. Tag-Along Rights: Provisions allowing minority shareholders to join in sale of majority stake - used to protect minority shareholders
3. Drag-Along Rights: Provisions enabling majority shareholders to force minority to join in sale - used to facilitate potential future sale
1. Initial Shareholders Schedule: List of founding shareholders and their shareholdings
2. Share Transfer Forms: Standard forms for transferring shares
3. Board Resolution Templates: Standard templates for common board resolutions
4. Meeting Procedures: Detailed procedures for conducting various types of meetings
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