Protective purposes of Articles of Association as per law include:

Shareholder Protection

1. Define shareholder rights and privileges.
2. Establish pre-emption rights.
3. Protect minority shareholders from oppression.
4. Ensure equal treatment of shareholders.
5. Regulate share transfer restrictions.

Director and Officer Protection

1. Define director duties and liabilities.
2. Establish liability protection for directors and officers.
3. Regulate indemnification and insurance.
4. Clarify decision-making procedures.
5. Establish conflict-of-interest procedures.

Financial Protection

1. Regulate financial reporting requirements.
2. Establish dividend distribution procedures.
3. Protect assets from unauthorized transactions.
4. Ensure accurate financial records.
5. Establish audit and accounting procedures.

Governance and Decision-Making

1. Establish board composition and powers.
2. Regulate decision-making procedures.
3. Ensure compliance with regulatory requirements.
4. Establish shareholder approval requirements.
5. Clarify dispute resolution procedures.

Dissolution and Winding-Up

1. Regulate procedures for dissolution and winding-up.
2. Establish distribution of assets.
3. Protect directors and officers from liability.
4. Establish winding-up committee.
5. Require final accounts and reports.

Miscellaneous Provisions

1. Establish dispute resolution procedures.
2. Clarify governing law and jurisdiction.
3. Regulate language and communication.
4. Establish filing requirements.
5. Ensure record-keeping and storage.

Regulatory Compliance

1. Comply with securities laws and regulations.
2. Register with regulatory authorities.
3. File updated Articles.
4. Meet annual reporting requirements.
5. Comply with industry-specific regulations.

Benefits of Protective Provisions

1. Protects shareholders’ interests.
2. Enhances corporate governance.
3. Reduces liability risks.
4. Promotes transparency and accountability.
5. Supports regulatory compliance.

Consequences of Non-Compliance

1. Penalties and fines.
2. Legal action.
3. Reputation damage.
4. Loss of licenses or permits.
5. Criminal liability.

To ensure compliance, companies should consult with legal, financial, and regulatory experts to ensure accuracy and completeness of their Articles of Association.