Corporate Law & Business Law
Company Articles of Association
The articles organize a company: activity, capital, management, and decisions. Understanding clauses to prepare and associated formalities.
Lexicon
Corporate Law & Business Law
Corporate Purpose
The corporate purpose described in the articles of association outlines the activities the company intends to undertake. It plays a role in the organization of powers and must be consistent with the economic project. Its registration does not replace the administrative or professional authorizations required for certain activities.
During commercial development, compare the new activity with the articles of association and the authorizations held. A general clause added at the end of the purpose does not necessarily resolve a specific regulatory requirement. To analyze an already signed contract, also distinguish the internal limits of the mandate and the rules that protect third parties: the answer is not deduced solely from the title of the activity.
The corporate purpose is therefore a clause to be reviewed during a new activity, and not only at the creation. The verification must bring together three elements: what the articles of association provide, what the company actually does, and what the obtained authorizations allow.
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