Articles of incorporation is a document which lays down the rules and regulations used to govern the various tasks of running the operations of an organization and handling its management. It is similar to a document called articles of association, the only difference being that articles of incorporation is a term used mostly in the United States and Canada and they are filed with the State or any regulatory authority. Every company must have some purpose, goals and specific terms which need to be followed when governing the internal affairs of the management and conducting business.
The Articles of Incorporation is a useful document which describes all the regulations to be considered while handling important tasks like appointing directors, issuing shares, paying dividends, voting rights and so on. By making these rules clear, one can avoid conflicts and hope for a smooth running of operations in the organization. The rights and duties of the management are also included in the articles of incorporation.