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What is AOA in a company?

AOA are the by-laws of the company which specifies the regulations for a company’s operation. It defines the roles and duties of the directors and other officers of the company. Information such as the total number of members, rules for a meeting of the company, voting power of members must be included in the AOA.

Is AOA binding on shareholders?

The Supreme Court found in V.B. Rangaraj v. V.B. Gopalkrishnan and others , a case involving the transfer of shares, that the AoA is binding on the company and its shareholders. As a result, AoA establishes a binding agreement among shareholders on the transfer or allotment of shares.