The Deed of Association is a crucial document required during the incorporation of a company in India, serving as the foundation for the company's existence and operations. This document is mandatory under the Companies Act, 2013, and must be prepared and filed with the Registrar of Companies before a company can be legally incorporated. It contains essential information about the company's structure, including its objects, capital, and basic regulations, and serves as a binding agreement between the company and its members. The Deed of Association needs to be carefully drafted as it defines the scope of the company's activities and the framework within which it must operate. Any subsequent changes to this document require special procedures and shareholder approval, making it vital to get the initial drafting right.
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1. Parties: Details of the founding members/subscribers forming the association
2. Background: Context of the company formation and purpose of the deed
3. Definitions: Key terms used throughout the document and their meanings
4. Name and Registered Office: Company name and address of the registered office
5. Objects of the Company: Main objects and ancillary objects of the company
6. Capital Structure: Details of authorized share capital and its division into shares
7. Liability of Members: Nature and extent of member liability
8. Board of Directors: Composition, appointment, and powers of the board
9. General Meetings: Procedures for conducting shareholder meetings
10. Share Transfer and Transmission: Rules governing the transfer of shares
11. Winding Up: Procedures for dissolution of the company
1. Pre-emptive Rights: Rights of existing shareholders to maintain their ownership percentage when new shares are issued
2. Tag-Along and Drag-Along Rights: Special rights for share transfers in case of stake sale by majority shareholders
3. Class Rights: Special rights attached to different classes of shares, if applicable
4. Dividend Policy: Rules for declaration and distribution of dividends
5. Corporate Social Responsibility: Required for companies meeting certain financial thresholds as per Companies Act
6. Foreign Investment Provisions: Special provisions if foreign investment is expected or present
1. Schedule 1: Details of Initial Subscribers: Names, addresses, and shareholding of initial members
2. Schedule 2: Initial Directors: Names and details of first directors of the company
3. Schedule 3: Share Capital Structure: Detailed breakdown of share classes and rights
4. Schedule 4: Incorporation Forms: Copies of statutory forms filed with Registrar of Companies
5. Appendix A: Specimen Share Certificate: Format of share certificates to be issued
6. Appendix B: Company Seal: Design and specifications of the company seal
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