The Effectiveness Of The Articles Of Association

One important amendment of the new Company Law is that it strengthens the autonomous function of the articles of association, which from every aspect guarantees the company more space to be self-governed. This change stresses the function of the articles as the "charter of the company". Before the amendment of the Company Law in 2005, our public consciousness of the article was indifferent, which led to its legal effect could be far from being executed. It is necessary to have a theoretical discussion on the articles of association since the amendment of the new Company Law. We should especially have a systematic research on the effect of the articles of association. We ought to establish the idea of the constitutional effect at theory so that we can consummate the effectual system of the articles of association in practice.This essay firstly discusses the amendment of the new Company Law on the regulations of the articles of association and its significance. Secondly, it starts to research the connotation of the articles of association as the basic question. Thirdly, it discusses the principle of the effect of the articles of association from the aspect of legal philosophy. It researches the scope of the articles of association's effect made up of time, target and matter. On this basis and through comparing the relative legislations of Anglo-American law system and continental law system, it discusses the realizing mechanism of the effect of the articles of association-the defect relief system of the effect of the articles of association. It also discusses the defect relief system of the effect of the articles of association in the new Company Law with relative cases.