Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The Articles of Association (AOA) serve as a binding contract that explicitly dictates internal administrative procedures, including the rules for share transfers, dividend distributions, and the conduct of meetings. Reason R: The Articles of Association (AOA) outline the authorized external activities of the company and define the primary objects for which the entity is formed. In the light of the above statements, choose the most appropriate answer from the options given below:

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General Studies · Articles of Association

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

A is correct but R is not correct.

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Answer 1

A is not correct but R is correct.

Answer 2

A is correct but R is not correct.

Answer 3

Both A and R are correct but R is NOT the correct explanation of A.

Answer 4

Both A and R are correct and R is the correct explanation of A.

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