When creating a company, the drafting of the articles of association is among the most important steps to follow. This act plays a crucial role in the life of the future company, so it should not be disregarded. If the articles of association are well-drafted, they will ensure the determination and resolution of possible problems and disputes, allowing the company to develop. But how to properly draft the articles of association?
Company statutes: what are they? What are they used for?
Generally speaking, the articles of association of a company are legal document that governs the functioning and organization of this entity. They confirm the regulations governing the relationships between the various partners and third parties. Indeed, they contain all the information concerning the corporate form and the chosen activity, for example, the articles of association of a SARL or those of a EURL. These articles of association should be made in writing in which certain obligatory mentions are specified. Therefore, they can be modified throughout the life of the company. However, the articles of association serve to inform third parties, to confirm the functioning of the company, and to identify the rules between the partners.
What are the mandatory mentions in the articles of association?
The rules set by the law vary according to the corporate form selected (SARL, SA, SAS, etc.). In fact, all companies should include the mandatory information in their articles of association. The latter should include some information in order for the company to be legally registered, including the corporate purpose, the corporate form, the corporate name, the share capital, the contributions of the shareholders or associates, their identities, the registered office, and the duration of the company, the date on which the company’s fiscal year will be closed, as well as the sharing of the share capital between the shareholders or associates. If the articles of association are incomplete, this will affect the launch of the company and its activity.
How to write the articles of association?
To write the articles of association of your company, two options are possible: either to write the articles of association yourself or to entrust this writing to a certain professional (a chartered accountant, a lawyer, or an online service provider). Drafting the articles of association yourself: this option costs nothing and is risk-free. It is enough to respect perfectly the clauses written and not to forget the obligatory mentions. In reality, the drafting of the clauses should be clear and precise, otherwise, interpretations must be made. The entrepreneurs focus on a model of the statutes to be downloaded from the Internet. For this, it is necessary to be very careful about every detail, trying to focus on a model that is suitable for your type of activity. Once finished, it is essential to consult a professional so that he can read and validate the drafted statutes.
Calling on a professional to draft the articles of association: the advantage of this option is the possibility of benefiting from real support and advice throughout the drafting of the articles of association. This professional will draft the articles of association according to the characteristics and needs of the company. However, one should be wary of attractive offers, i.e. at low prices, as it is possible that the professional will be unskilled or provide a poor quality service.