1442:, the founders of the United States had a healthy fear of corporations after being exploited for years by those in England. As a result, they limited the role of corporations by only granting select corporate charters, mainly to those that were beneficial to society as a whole. For the better part of the first one hundred years of United States history, the power of corporations was severely limited as owners could not own any stock or property, make financial donations to a political party, and legislators could dissolve a corporation at any time relatively easily. Corporations did not have the same corporate veil of protection that are enjoyed today.
1337:, the process of incorporation can be done either at the federal or provincial level. Companies which incorporate with the federal government will generally need to register extra-provincially in the province that they elect to do business. Similarly, a provincial corporation may need to register extra-provincially if they are to have offices outside of their home province. Incorporated Canadian companies can generally use either Corp., Corporation, Inc., Incorporated, Incorporée, Limited, Limitée, Ltd., Ltée, Société par actions de régime fédéral, S.A.R.F, in their name, but this may vary from province to province.
256:
1193:, or in their absence, by the vice-chair. The Directors survey their area of responsibility. They may determine to make a 'Resolution' at the next AGM or if it is an urgent matter, at an EGM. The Directors who are the electives of one major shareholder, may present their view but this is not necessarily so - they may have to view the Objectives of the company and competitive position. The chair may have to break the vote if there is a tie. At the AGM, the various Resolutions are put to vote.
1562:
disputes. State corporate laws are very modern and specifically detail what a corporation is allowed to do, and as a result other states often try to emulate
Delaware's legal corporate model. There is even further protection for corporations via the Delaware Asset Protection Trust in which personal assets are protected in the event of litigation. In order to abide by securities laws, some companies are even required to incorporate in Delaware.
141:
45:
86:
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incorporate in the state in order to be in compliance with securities law. Filing in Nevada also affords the corporate owners privacy as the state does not require names to do so. Unlike many other states, the corporation does not have to do business nor do any of the owners have to be a resident in the state to incorporate there.
1570:
private data servers. Being a United States citizen is not a prerequisite for incorporating in the state, although there are countries of origin where businesses are ineligible. The state is one of the best in terms of fiscal health, and as a result corporation owners do not have to file personal income taxes.
1394:, the Companies Registry provides four samples of model Articles of Association, and they are known as Sample A, B, C, and D respectively.< Sample A and B are both designed for a private company (the most common company type), Sample C for a public company, and Sample D for a company limited by guarantee.
1163:
The
Objectives and the purpose of the company are determined in advance by the shareholders and the Memorandum of Association (MOA), if separate, which denotes the name of the company, its Head-Office, street address, and (founding) Directors and the main purposes of the company for public access. It
1565:
Nevada: Despite having the highest registration fee in the United States and a negative stigma, Nevada is a very popular state for incorporation. The main reason for this is that the corporation does not have to pay any of the numerous state taxes. Similar to
Delaware, some companies are mandated to
1540:
Many corporations file in the state in which they are doing business, although this is not required by law. Corporations doing business in multiple states often file articles in the particular state that is the most lenient on corporations. A majority of public corporations in the United States file
1497:
The first step in filing articles of incorporation is for the owners to decide which state to incorporate the business in. Once the state has been chosen, the documents with all the corporation's information have to be filled out, whether physically or virtually. Once completed, these documents will
1201:
The AGM is called with a notice sent to all shareholders with a clear interval. A certain quorum of shareholders is required to meet. If the quorum requirement is not met, it is cancelled and another
Meeting called. If it at that too a quorum is not met, a Third Meeting may be called and the members
1377:
have been published since 1865. The articles of association of most companies incorporated prior to 1 October 2009 – particularly small companies – are Table A, or closely derived from it. However, a company is free to incorporate under different articles of association, or to amend its articles of
1205:
Decisions are taken by a show of hands; the chair is always present. Where decisions are made by a show of hands is challenged, it is met by a count of votes. Voting can be taken in person or by marking the paper sent by the company. A person who is not a shareholder of the company can vote if s/he
1217:
A Special
Resolution can be tabled at a Director's Meeting. The Ordinary Resolution requires the endorsement by a majority vote, sometimes easily met by partners' vote. The Special Resolution requires a 60, 70 or 80% of the vote as stipulated by the constitution of the company. Shareholders other
1154:
In present countries there are usually a few major shareholders who come together to form the company. Each usually holds the right to nominate, without objection of the other, a certain number of
Directors who become nominees for the election by the shareholder body at the AGM. Shareholders may
1569:
Wyoming: The standard filing fees owed in the process of incorporating are zero in
Wyoming, and the only fee owed is minimal compared to other states. Other favorable corporate laws include asset protection for owners as well as confidential information protection through requiring the usage of
1561:
companies and 75% of new corporations every year are incorporated in the state of
Delaware due to the state's favorable corporate treatment. The state's unique court, the Court of Chancery, allows corporate disputes to be heard without a jury within a reasonable time compared to non-corporate
1145:
The number of directors depends on the size of the company and statutory requirements. The chairperson is generally a well-known outsider but they may be a working executive of the company, typically of an
American company. The directors may, or may not, be employees of the company.
1155:
also elect
Independent Directors (from the public). The chair would be a person not associated with the promoters of the company, a person is generally a well-known outsider. Once elected, the BOD manages the company. The shareholders play no part until the next AGM/EGM.
1325:, from the new Companies Act 2008 which commenced in 2011, articles and memoranda of association have been replaced by a "memorandum of incorporation" or "MoI". The MoI gives considerably more scope to vary how to the company is governed than the previous arrangement.
1168:
who is an appointee of the Government of the country. For their assurance, the shareholders are permit of the Memorandum of Association. Any matter in the Articles of Association not within the scope of the Memorandum of Association of the company is void.
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and the corporate statutes in the state where articles of incorporation are filed. To amend a corporate charter, the amendment must usually be approved by the company's board of directors and voted on by the company's
1218:
than partners may vote. The matters which require the Ordinary and Special Resolution to be passed are enumerated in company or Corporate Law. Special Resolutions covering some topics may be a statutory requirement.
1481:
The articles of incorporation typically include the name of the corporation, the type of corporate structure (e.g. profit corporation, nonprofit corporation, benefit corporation, professional corporation), the
1453:
wildly enriched corporations and with this new wealth came bribes to legislators and courts that allowed for increased liability protection and other corporate protections. The 1886 Supreme Court case
1421:
The use of model articles for companies is not compulsory. If custom articles of associations are not registered, the relevant model articles apply by default from incorporation.
1498:
be reviewed by the secretary of state's office, and upon approval from the state government and payment of a filing fee, the company has officially become a legal corporation.
1489:
The state fee to file articles of incorporation to incorporate a profit corporation range from $ 50 - $ 300, and to incorporate a nonprofit corporation range from $ 0 -$ 125.
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has the 'proxy', an authorization from the shareholder. Each share carries the number of votes attached to it. Some votes may be for the decision, others not.
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1927:
Under the law prior to the 2006 Act, in the event of any inconsistency between the memorandum and the articles, the memorandum usually prevailed: see
1382:
of its shareholders, provided that they meet the requirements and restrictions of the Companies Acts. Such requirements tend to be more onerous for
837:
1053:
The articles can cover a medley of topics, not all of which is required in a country's law. Although all terms are not discussed, they may cover:
1642:
1455:
1486:, the number of authorized shares, the effective date, the duration (perpetual by default), and the names and signatures of the incorporators.
553:
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Articles of Incorporation are appended to a Certificate of Incorporation and become the legal document that governs the corporation. In
205:
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cannot be changed except at an AGM or Extraordinary General Meeting (EGM) and statutory allowance. The MOA is generally filed with a
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Articles of association are critical documents to corporate operations, as they may regulate both internal and external affairs.
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for companies incorporated in the United Kingdom. Under the new legislation, the articles of association will become the single
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1240:(and are often capitalized as an abbreviation for the full term). The Articles are a requirement for the establishment of a
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The appointments of directors, which shows whether a shareholder dominates or shares equality with all of the contributors
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for a UK company, and will subsume the majority of the role previously filled by the separate memorandum of association.
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set the important legal precedent that corporations were “natural people” and as a result were protected under the
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present, unlimited by the quorum, take all decisions. There are variations to this among companies and countries.
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1976:
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The shift towards corporations gaining more power and control happened as the United States progressed towards
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A company is run by the directors, who are appointed by the shareholders. Usually, the shareholders elect a
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Determinations for the price paid for shares transferred following cessation of directorship or employment.
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The following information is required upon filing Articles of Incorporation in the United States:
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31:
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Drag-along provisions, or when the majority shareholders force a sale on the other shareholders.
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There are two types of resolutions, known as an Ordinary Resolution and a Special Resolution.
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832:
2137:"Council Post: The Benefits And Pitfalls Of Incorporating In Delaware, Nevada And Wyoming"
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on 8 November 2006 and was fully implemented on 1 October 2009. It provides a new form of
8:
2052:"Entity Formation Fees by State | Harbor Compliance | www.harborcompliance.com"
2003:
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The following information is required upon filing Articles of Incorporation in Canada:
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The articles of incorporation outline the governance of a corporation along with the
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1021:, is a document or charter that establishes the existence of a corporation in the
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Other information may be required upon filing but this varies from state to state
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Confidentiality and the founders' agreement with penalties for disclosure
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How the day-to-day operations of the company are conducted, such as by a
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413:
398:
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30:
For the articles adopted by the First Continental Congress in 1774, see
2008:
The Harvard Law School Program on Corporate Governance Discussion Paper
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933:
699:
649:
1236:, of an American or Canadian company, are often simply referred to as
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The Board meets several times each year. At each meeting there is an '
1391:
1264:, they are the constitution of a company. The equivalent term for an
1139:
2199:
1803:"Companies Registry - FAQ - Local Limited Companies - Incorporation"
1000:, the kind of business to be undertaken, and the means by which the
140:
1542:
1257:
905:
2194:
1682:"Memorandum and articles of association for UK limited companies"
1595:
1550:
1374:
1307:
1253:
1186:
383:
2102:"Why do so many corporations choose to incorporate in Delaware?"
1546:
1429:
1373:
In the United Kingdom, model articles of association, known as
1334:
1272:. Roughly equivalent terms operate in other countries, such as
1182:
1103:
1058:
1026:
1029:. They generally are filed with the Secretary of State in the
546:
Charitable incorporated organisation (England and Wales)
1745:
1585:
1472:
1245:
1062:
1523:
A statement that summarizes the core purpose of the business
2167:"Top 3 Best States to Incorporate a Business | LegalNature"
1731:
Delport, Piet "The New Companies Act Manual" (Lexis Nexis)
1368:
1189:
or is a statutory requirement. It is presided over by the
988:
in some jurisdictions) is a document that, along with the
287:
1977:"Our Hidden History of Corporations in the United States"
1106:
number and the percentage of vote needed to pass a motion
1185:) is required to meet. This is either determined by the
1299:
1260:
and many other countries. In 1955, Together with the
1517:
Names and Address of who will receive mail and where
165:. Unsourced material may be challenged and removed.
1115:for purchase rights and counter-bids by a founder.
2213:
1766:
1708:"Articles of Agreement Law and Legal Definition"
1643:The Companies (Model Articles) Regulations 2008
1456:Santa Clara County v. Southern Pacific Railroad
992:(in cases where it exists) forms the company's
1181:' before it. A minimum number of Directors (a
996:. The AoA defines the responsibilities of the
554:Scottish charitable incorporated organisation
2077:"How to Incorporate Your Business - RingTree"
953:
1511:Whether or not the corporation is for profit
1430:History of corporations in the United States
1158:
1033:where the company is incorporated, or other
1004:exert control over the board of directors.
259:The 1870 articles of incorporation for the
73:Learn how and when to remove these messages
960:
946:
1942:"What are Model Articles of Association?"
1196:
243:Learn how and when to remove this message
225:Learn how and when to remove this message
123:Learn how and when to remove this message
1792:Joint Stock Companies Act 1856 - Table B
1526:The number of authorized shares of stock
254:
1767:Government of Canada, Industry Canada.
1369:Model articles of associations (A.O.A.)
14:
2214:
2134:
1466:
1350:Names and Residencies of Incorporators
655:Limited liability limited partnership
570:Industrial and provident society
2161:
2159:
2157:
2130:
2128:
2126:
2124:
2122:
2096:
2094:
2027:"What are Articles of Incorporation?"
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2019:
2017:
2001:
1971:
1969:
1967:
1965:
1963:
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1344:Name of Business (Numbered and Named)
1065:) and the classes of shares, such as
752:Gesellschaft mit beschränkter Haftung
1514:Names and Addresses of Incorporators
1221:
163:adding citations to reliable sources
134:
79:
38:
24:
2154:
2119:
2091:
2014:
1960:
1102:Directors meetings, including the
95:tone or style may not reflect the
25:
2248:
2202:(for England, Wales and Scotland)
2188:
1363:
1359:Anticipated Business Restrictions
1172:
1079:and the transferability of shares
54:This article has multiple issues.
1535:
1424:
1082:Valuation of intellectual rights
797:Société à responsabilité limitée
286:
139:
105:guide to writing better articles
84:
43:
2069:
2044:
2002:Hirst, Scott (1 January 2017).
1995:
1934:
1921:
1901:"Explanatory Notes to Sample D"
1893:
1873:"Explanatory Notes to Sample C"
1865:
1845:"Explanatory Notes to Sample B"
1837:
1817:"Explanatory Notes to Sample A"
1769:"How to incorporate a business"
1661:
1613:Government-sponsored enterprise
1520:Names and Addresses of Officers
1149:
1041:(LLCs) in the United States is
150:needs additional citations for
62:or discuss these issues on the
1809:
1795:
1786:
1760:
1734:
1725:
1700:
1674:
1655:
1492:
1209:
13:
1:
1742:"How to make your MOI "mooi""
1553:is a popular choice as well.
1378:association at any time by a
1353:Proof of Canadian Citizenship
1095:Special voting rights of the
27:Constitution of a corporation
1591:Certificate of incorporation
1125:
1015:certificate of incorporation
679:Massachusetts business trust
7:
1668:Corporate Finance Institute
1574:
1300:
1048:
1039:limited liability companies
866:Piercing the corporate veil
562:Community interest company
537:UK / Ireland / Commonwealth
525:Economic interest grouping
10:
2253:
2227:United Kingdom company law
1099:and their mode of election
1013:, also referred to as the
635:Limited liability company
29:
1664:"Articles of Association"
1618:List of company registers
1356:Corporate Share Structure
1328:
1290:
1262:memorandum of association
1233:articles of incorporation
1159:Memorandum of association
1142:(e.g. India and the UK).
1037:. An equivalent term for
1011:Articles of incorporation
990:memorandum of association
986:articles of incorporation
846:Internal affairs doctrine
841:and estoppel corporations
174:"Articles of association"
18:Articles of incorporation
2232:Organizational documents
2056:www.harborcompliance.com
1648:
1581:Articles of organization
1270:articles of organization
1043:articles of organization
270:This article is part of
2206:Articles of Association
1712:definitions.uslegal.com
1686:Quality Formations Blog
1416:constitutional document
1228:articles of association
978:articles of association
516:Societas unius personae
378:General corporate forms
32:Continental Association
2237:Management cybernetics
1557:Delaware: Over 60% of
1197:Annual general meeting
1166:Registrar of Companies
1136:annual general meeting
1113:First right of refusal
828:Business judgment rule
264:
1633:Outline of management
1608:Congressional charter
772:Naamloze vennootschap
762:Kabushiki gaisha
579:Limited company
258:
1508:Location of Business
1505:Name of the Business
1274:Gesellschaftsvertrag
1138:(AGM), which may be
974:corporate governance
896:Beneficial ownership
833:Corporate governance
669:Delaware corporation
496:Societas cooperativa
159:improve this article
2171:www.legalnature.com
2135:Giacopelli, James.
1931:(1885) 30 Ch D 376.
1628:Operating agreement
1467:General information
1436:American Revolution
1434:After fighting the
911:Corporate registers
871:Rochdale Principles
625:Benefit corporation
451:Sole proprietorship
2195:Legislation.gov.uk
1981:Reclaim Democracy!
1451:American Civil War
1404:Companies Act 2006
1398:Companies Act 2006
1380:special resolution
1132:board of directors
1087:board of directors
712:Aktiengesellschaft
684:Nevada corporation
265:
2031:Harbor Compliance
2004:"Frozen Charters"
1983:. 1 February 2000
1948:. 7 February 2022
1748:on 2 October 2016
1623:Mission statement
1447:industrialization
1244:under the law of
1230:of a company, or
1222:Various countries
1035:company registrar
1019:corporate charter
970:
969:
851:Limited liability
813:
812:
722:Ansvarlig selskap
609:Unlimited company
446:Shelf corporation
441:Shell corporation
429:Limited liability
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99:used on Knowledge
97:encyclopedic tone
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1744:. Archived from
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1473:corporate bylaws
1384:public companies
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916:Registered agent
861:Drag-along right
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107:for suggestions.
103:See Knowledge's
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1688:. 24 April 2017
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1067:preferred stock
1057:The issuing of
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856:Tag-along right
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404:Holding company
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1980:
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1773:www.ic.gc.ca
1772:
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1746:the original
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157:Please help
152:verification
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56:Please help
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2176:18 December
2146:18 December
2111:18 December
2036:15 November
1987:18 December
1778:18 December
1692:22 November
1559:Fortune 500
1549:, although
1493:How to file
1347:Head Office
1316:South Korea
1284:in Poland,
1280:in France,
1210:Resolutions
1191:Chairperson
1097:Chairperson
877:Ultra vires
597:proprietary
414:Partnership
409:Joint-stock
399:Corporation
394:Cooperative
215:August 2018
113:August 2018
2216:Categories
2010:(2016–01).
1312:Jeong-gwan
1031:U.S. State
934:Law portal
782:Osakeyhtiö
701:Aktiebolag
650:Series LLC
185:newspapers
59:improve it
2208:(Table A)
1908:cr.gov.hk
1880:cr.gov.hk
1852:cr.gov.hk
1824:cr.gov.hk
1752:26 August
1602:Collegium
1406:received
1392:Hong Kong
1386:than for
1287:Ukrainian
1140:statutory
1126:Directors
998:directors
984:, called
822:Doctrines
592:by shares
308:Australia
65:talk page
1913:11 April
1885:11 April
1857:11 April
1829:11 April
1575:See also
1543:Delaware
1258:Pakistan
1238:articles
1049:Contents
906:Contract
839:De facto
671: /
485:Societas
303:Anguilla
272:a series
2083:16 July
2061:7 March
1717:7 March
1596:Charter
1551:Wyoming
1375:Table A
1308:Ukraine
1278:statuts
1254:Nigeria
1242:company
1187:by-laws
1017:or the
806:more...
424:Limited
419:General
384:Company
364:Germany
348:Vietnam
263:Company
199:scholar
2141:Forbes
1586:Bylaws
1547:Nevada
1449:. The
1335:Canada
1329:Canada
1310:, and
1302:statut
1291:статут
1282:statut
1248:, the
1183:quorum
1179:agenda
1104:quorum
1059:shares
1027:Canada
800:(SARL)
775:(N.V.)
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755:(GmbH)
703:
692:Others
657:(LLLP)
602:public
581:(Ltd.)
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527:(EEIG)
487:
359:France
318:Canada
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180:
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1952:1 May
1904:(PDF)
1876:(PDF)
1848:(PDF)
1820:(PDF)
1649:Notes
1438:with
1390:. In
1306:) in
1246:India
1063:stock
735:(A/S)
725:(ANS)
637:(LLC)
572:(IPS)
564:(CIC)
548:(CIO)
519:(SUP)
509:(SPE)
499:(SCE)
328:India
206:JSTOR
192:books
2178:2020
2148:2020
2113:2020
2106:WHYY
2085:2024
2063:2023
2038:2020
1989:2020
1954:2024
1915:2023
1887:2023
1859:2023
1831:2023
1780:2020
1754:2016
1719:2023
1694:2020
1402:The
1226:The
1075:The
1069:and
1025:and
791:S.A.
785:(Oy)
745:(AS)
715:(AG)
705:(AB)
489:(SE)
178:news
1545:or
1541:in
1321:In
1314:in
1268:is
1266:LLC
982:AoA
972:In
313:BVI
161:by
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