{"id":4875,"date":"2025-06-26T10:34:48","date_gmt":"2025-06-26T05:04:48","guid":{"rendered":"https:\/\/simplebooks.com\/?p=4875"},"modified":"2025-06-26T19:54:43","modified_gmt":"2025-06-26T14:24:43","slug":"articles-of-association","status":"publish","type":"post","link":"https:\/\/simplebooks.com\/srilanka\/articles-of-association","title":{"rendered":"How to Draft Your Company\u2019s Articles Of Association \u2013 The Complete Guide"},"content":{"rendered":"\n<p>When you\u2019re registering your <a href=\"https:\/\/simplebooks.com\/srilanka\/private-limited-company-registration\/\">private limited company<\/a> in Sri Lanka, one of the main tasks you will have to do is to hand in your Articles of Association.&nbsp;<\/p>\n\n\n\n<p>For most first-time entrepreneurs, this is a completely new concept \u2013 and that\u2019s perfectly normal.&nbsp;<\/p>\n\n\n\n<p>You wouldn\u2019t come across this term unless you\u2019re registering your Limited Company in Sri Lanka.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"epyt-video-wrapper\"><iframe loading=\"lazy\"  id=\"_ytid_53214\"  width=\"1080\" height=\"608\"  data-origwidth=\"1080\" data-origheight=\"608\"  data-relstop=\"1\" src=\"https:\/\/www.youtube.com\/embed\/99GeckIuklc?enablejsapi=1&#038;autoplay=0&#038;cc_load_policy=0&#038;cc_lang_pref=&#038;iv_load_policy=1&#038;loop=0&#038;rel=0&#038;fs=1&#038;playsinline=0&#038;autohide=2&#038;theme=dark&#038;color=red&#038;controls=1&#038;disablekb=0&#038;\" class=\"__youtube_prefs__  epyt-is-override  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>So, you might find yourself asking: What are \u2018Articles of Association\u2019 and what do they exactly do?<\/p>\n\n\n\n<p>Well, that\u2019s exactly what we\u2019re here to talk about today.&nbsp;<\/p>\n\n\n\n<p>In this article, we\u2019ll be covering all about the topic at hand so keep on reading!&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-499968f5 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button ctat\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/srilanka\/contact\/\">Get Expert Advice for Free<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1\">What are the Articles of Association?<\/h2>\n\n\n\n<p>Think of this as a document that tells the Registrar of Companies and everyone else what your company is all about.&nbsp;<\/p>\n\n\n\n<p>It will usually cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Objectives of the new company&nbsp;<\/li>\n\n\n\n<li>Rights and obligations of the shareholders&nbsp;<\/li>\n\n\n\n<li>The management and administration&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Sri Lankan law, specifically the Companies Act No.7 of 2007 and its subsequent amendments, requires every company, including private and public limited companies, to prepare Articles of Association upon registration.\u00a0<\/p>\n\n\n\n<p>So, once you submit your Articles, the registrar will have an idea about the structure, functions and operational methods of your newly registered company.<\/p>\n\n\n\n<p>It\u2019s basically your organization\u2019s user manual if you think about it.&nbsp;<\/p>\n\n\n\n<p>If you run a business in Sri Lanka, it\u2019s important to stay up to date with the latest legal changes. The rules governing companies have recently been updated with the Companies (Amendment) Act No. 13 of 2019 and the Companies (Amendment) Act of 2024, both of which introduce key changes to the Companies Act No. 7 of 2007.&nbsp;<\/p>\n\n\n\n<p>So, it\u2019s crucial to ensure that your company\u2019s Articles of Association (AOA) reflect these new updates. Relying on outdated or older versions of your AOA could lead to serious compliance issues.&nbsp;<\/p>\n\n\n\n<p>To help you navigate these changes, we\u2019ve put together this guide to walk you through what\u2019s new and how it might affect your company\u2019s governance documents. Staying informed ensures your company stays on the right side of the law.<\/p>\n\n\n\n<p>Let\u2019s now take a look at how you can create your Articles of Association.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2\">How do you draft your company\u2019s Articles of Association in Sri Lanka?<\/h2>\n\n\n\n<p>Before we talk about how you can draft your articles, we first need to tell you what your articles will include.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What will your Articles of Association consist of?<\/h3>\n\n\n\n<p>Your Articles of Association will be made up of a few \u2018clauses\u2019. They\u2019re basically a set of paragraphs that will each talk about a unique and important part of your company.&nbsp;<\/p>\n\n\n\n<p>These clauses are divided into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company name&nbsp;<\/li>\n\n\n\n<li>The purpose of the company&nbsp;<\/li>\n\n\n\n<li>The organization&nbsp;<\/li>\n\n\n\n<li>Shares and shareholders<\/li>\n\n\n\n<li>Meetings&nbsp;<\/li>\n\n\n\n<li>Director\/s and Secretary&nbsp;&nbsp;<\/li>\n\n\n\n<li>Accounts, audits and indemnity<\/li>\n\n\n\n<li>Miscellaneous&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>However you draft your articles, it should always cover all of these topics. Since these clauses have to be mentioned, they\u2019re called \u201cmodel clauses\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How-to: Draft your Articles of Association<\/h3>\n\n\n\n<p>There are two ways you can draft this:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Use the standard set of Articles of Association\/model articles from the Companies Act stated in the first schedule of the Act, OR;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Draft your own Articles of Association<\/li>\n<\/ol>\n\n\n\n<p>If you\u2019re planning to use the standard set of Articles of Association, you can access them <a href=\"http:\/\/www.drc.gov.lk\/en\/wp-content\/uploads\/2018\/04\/Act-7-of-2007-English.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> at the Companies Act.<\/p>\n\n\n\n<p>This will give you the \u2018model clauses\u2019 we mentioned before.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s take a look at these model clauses with a little more detail, and explore what they\u2019re all about.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3\">Model Clauses in your Articles of Association&nbsp;<\/h2>\n\n\n\n<p>As we mentioned earlier, these are mandatory topics you need to cover in your company\u2019s articles.&nbsp;<\/p>\n\n\n\n<p>However, you don\u2019t need to limit your articles only to these clauses. You can add what you deem necessary.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s take a look at each model clause.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">1. The Company Name<\/h6>\n\n\n\n<p>One of the main purposes of your articles is to show that your company is a legal entity with a unique name.&nbsp;<\/p>\n\n\n\n<p>You can elaborate on this on your company name clause.&nbsp;<\/p>\n\n\n\n<p>Additional resources &#8211; <a href=\"\/srilanka\/how-to-name-a-business\/\">How to name a company the right way<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">2. Purpose of the company<\/h6>\n\n\n\n<p>Under this clause, you need to mention the reason as to which you created your company. It should also include its motives and what you hope to achieve with the company as time goes on.<\/p>\n\n\n\n<p>If your company has any foreign shareholding, the DRC advises that your company\u2019s objectives should be clearly mentioned in the AOA.\u00a0<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">3. The Organization<\/h6>\n\n\n\n<p>It is important to mention the legal organization of the company with details like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company\u2019s registered address<\/li>\n\n\n\n<li>Number of directors<\/li>\n\n\n\n<li>Share structure<\/li>\n<\/ul>\n\n\n\n<p>Now, the 2024 Amendment Act officially allows a company (unless it\u2019s a company limited by guarantee) to be registered or continue with just one shareholder.&nbsp;<\/p>\n\n\n\n<p>This shareholder can be any individual, another company, or the secretary to the treasury acting for the government.&nbsp;<\/p>\n\n\n\n<p>If your company is incorporated as a single-shareholder company, your AOA needs to be tailored to reflect changes in how meetings, quorums, and decision-making work.<\/p>\n\n\n\n<p>Useful links &#8211; <br><a href=\"\/srilanka\/private-limited-company-registration\/\">How to register your Private Limited Company.<\/a><\/p>\n\n\n\n<p><a href=\"\/srilanka\/form-13\/\">How to change your registered office address.<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">4. Shares and Shareholders&nbsp;<\/h6>\n\n\n\n<p>This clause has to basically explain the issue, calls and distributions of the shares in your company.&nbsp;<\/p>\n\n\n\n<p>This means that you also have to mention the process you will follow to maintain the share register, share certificates, transfer and transmission of shares.<\/p>\n\n\n\n<p>Remember, when you\u2019re mentioning the shares of the company, you have to mention the meetings of the shareholders as well. This basically means that you have to explain the rules that apply when the shareholders meet, give notice of meetings, the quorum(the minimum number of people that has to attend the meetings), voting etc.&nbsp;<\/p>\n\n\n\n<p>And remember, whenever your shareholders meet \u2013 you have to maintain the minutes of that meeting. According to the Articles of Association, you have to maintain a separate book for this purpose. Under Section 147, every company must keep minutes of all general meetings and meetings of its directors.<\/p>\n\n\n\n<p>These minutes must be documented, so information regarding updating minutes should be noted.&nbsp; Since the Articles of Association is a set of guidelines, it has to specifically mention how these actions will take place.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">5. Directors and Secretary<\/h6>\n\n\n\n<p>This clause has to give information about the powers and duties of the Directors and Secretaries.&nbsp;<\/p>\n\n\n\n<p>Here, you can specify your Directors into managing directors and executive directors.<\/p>\n\n\n\n<p>You also have to mention their appointments, removals, conduct at meetings and information regarding these meetings etc.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Additional information &#8211; <a href=\"\/srilanka\/form-20\/\">How to make changes to the Directors and Secretary of your company.&nbsp;<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">6. Accounts and Audits&nbsp;<\/h6>\n\n\n\n<p>Here, all you have to do is explain how your company will maintain its accounting records and financial statements.<\/p>\n\n\n\n<p>An important part of this clause is mentioning how you will carry out your audits. This is because conducting audits is a mandatory part of running a company.<\/p>\n\n\n\n<p>Useful blogs &#8211; <a href=\"\/srilanka\/bookkeeping\/\">A basic guide to bookkeeping.<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">7. Liquidation and removal from the register&nbsp;<\/h6>\n\n\n\n<p>You have to mention how you will handle the process of closing down your company if you ever have to.<\/p>\n\n\n\n<p>Include how you will appoint a liquidator and about the process of distributing your surplus assets.<\/p>\n\n\n\n<p>Important reading material &#8211; <a href=\"\/srilanka\/how-to-close-your-company-a-step-by-step-guide\/\">How to close your company.<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">8. Miscellaneous<\/h6>\n\n\n\n<p>There are a few things you have to mention on this clause:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The documents that will be kept by the company.<\/li>\n\n\n\n<li>The rights of the directors and shareholders to the above documents<\/li>\n\n\n\n<li>Name of the company (repetition from clause 01)<\/li>\n\n\n\n<li>Information about notices, insurance and indemnity and on modifications in respect to private companies.&nbsp;<\/li>\n<\/ol>\n\n\n[et_pb_section global_module=\"25606 \"][\/et_pb_section]\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4\">Things to remember when drafting your Articles of Association in Sri Lanka&nbsp;&nbsp;<\/h2>\n\n\n\n<p>There are a few things you probably should keep in mind when you\u2019re drafting your articles:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Every clause has to be agreed upon by the company shareholders.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Companies can choose between a set of straightforward guidelines or customize them to suit the company\u2019s work ethic.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Even though you customize your articles, they always have to be in line with the companies act<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5\">How important are Articles of Association when registering your Company in Sri Lanka?<\/h2>\n\n\n\n<p>When we take an overall look at the company registration process, there are six important steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Reserving a unique name for your company&nbsp;<\/li>\n\n\n\n<li>Submitting company registration forms&nbsp;<\/li>\n\n\n\n<li>Submitting Articles of Association&nbsp;<\/li>\n\n\n\n<li>Giving public notice of incorporation&nbsp;<\/li>\n\n\n\n<li>Opening a bank account for your company<\/li>\n\n\n\n<li>Applying for <a href=\"\/srilanka\/tax-identification-number-sri-lanka\/\">tax identification certificate<\/a> of company&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>As you can see, step three is submitting your Articles of Association.<\/p>\n\n\n\n<p>This means that you cannot register your company without having your articles of association in order.&nbsp;<\/p>\n\n\n\n<p>This is because they\u2019re like an internal governing document for your company. It makes up half of your company\u2019s constitution.<\/p>\n\n\n\n<p>Therefore, the Articles of Association coupled with resolutions and agreements affecting your company externally is your company\u2019s constitution.<\/p>\n\n\n\n<p>The ROC ensures that your Articles of Association complies with the Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6\">Have Simplebooks prepare your Articles of Association!<\/h2>\n\n\n\n<p>You can technically draft your own Articles of Association when registering your company.&nbsp;<\/p>\n\n\n\n<p>However, this can at times be a complicated process.&nbsp;<\/p>\n\n\n\n<p>This is where Simplebooks can step in to help! As a registered company secretary, we\u2019ve helped over 5,000 businesses prepare and approve their Articles of Association.\u00a0<\/p>\n\n\n\n<p>If you ever need a professional to handle your Articles preparation process; whether it be the standard set or a custom set &#8211; we\u2019re here to help.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button ctat\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/srilanka\/contact\/\">Book a Free Consultation<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"7\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1750914172637\"><strong class=\"schema-faq-question\"><strong>What are Articles of Association?<\/strong><\/strong> <p class=\"schema-faq-answer\">Articles of Association (AOA) in Sri Lanka is a legal document that is required when registering a company under the Companies Act No.7 of 2007. It includes the structure of your company, governance, shareholder rights, director responsibilities, and internal processes.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1710094233276\"><strong class=\"schema-faq-question\">What are the contents of Articles of Association?<\/strong> <p class=\"schema-faq-answer\">Usually, your Articles of Association have to include:<br\/><br\/>* The company name\u00a0<br\/>* The purpose of the company\u00a0<br\/>* The organization\u00a0<br\/>* Shares and shareholders<br\/>* Meetings\u00a0<br\/>* Director\/s and Secretary\u00a0\u00a0<br\/>* Accounts, audits and indemnity<br\/>* Miscellaneous\u00a0<br\/><br\/>You can add sections to this if you\u2019re customizing your Articles.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1710094295007\"><strong class=\"schema-faq-question\">How do you write an Article of Association?<\/strong> <p class=\"schema-faq-answer\">You can either use the model Articles of Association mentioned in the First Schedule of the Companies Act No.07 of 2007 or customize your Articles in accordance with the Act.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1710094309926\"><strong class=\"schema-faq-question\">Are Articles of Incorporation the same as Articles of Association?<\/strong> <p class=\"schema-faq-answer\">\u201cArticles of Incorporation\u201d is not a term used in Sri Lankan company law; it\u2019s a legal concept. The correct term in Sri Lanka is Articles of Association, which form part of the company\u2019s constitution under Section 13 of the Companies Act. In Sri Lanka, the term \u201cIncorporation\u201d generally refers to the entire company registration process, not just the articles.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1710094319012\"><strong class=\"schema-faq-question\">What is the importance of Articles of Association?<\/strong> <p class=\"schema-faq-answer\">Your Articles tell the Registrar of Companies (ROC) a summary of what your company is about. Without this information, they won\u2019t let you register your private limited company (or any Limited Company.) Also, the Articles of Association (AOA) serve as the rulebook for a company. They outlined how the company is managed, how the decisions are made, and the rights and responsibilities of its directors and shareholders.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The articles of association are, quite true to its name, a mandatory set of documents created by the associates of a newly founded company, that specify the regulations for a company\u2019s operations and defines a company\u2019s purpose. <\/p>\n","protected":false},"author":1,"featured_media":25513,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[18],"tags":[26],"class_list":["post-4875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en","tag-secretarial-service"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Articles of Association - 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