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Articles of Association

Company Registration


Company Registration

England

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ARTICLES OF ASSOCIATION
of
____________________
(the "Company")

  1. INDEX TO THE ARTICLES

    PART 1
    INTERPRETATION AND LIMITATION OF LIABILITY

  2. Defined terms
  3. Liability of members
  4. PART 2
    DIRECTORS
    DIRECTORS’ POWERS AND RESPONSIBILITIES

  5. Number of directors
  6. Director's general authority
  7. Shareholders’ reserve power
  8. Directors may delegate
  9. Committees
  10. DECISION-MAKING BY DIRECTORS

  11. Resolutions by director
  12. Records of decisions to be kept
  13. Directors’ discretion to make further rules
  14. APPOINTMENT OF DIRECTORS

  15. Methods of appointing directors
  16. Termination of director’s appointment
  17. Directors’ remuneration
  18. Directors’ expenses

  19. PART 3
    SHARES AND DISTRIBUTIONS
    SHARES

  20. All shares to be fully paid up
  21. One class of shares
  22. Company not bound by less than absolute interests
  23. Share certificates
  24. Replacement share certificates
  25. Share transfers
  26. Transmission of shares
  27. Exercise of transmittees’ rights
  28. Transmittees bound by prior notices
  29. DIVIDENDS AND OTHER DISTRIBUTIONS

  30. Procedure for declaring dividends
  31. Payment of dividends and other distributions
  32. No interest on distributions
  33. Unclaimed distributions
  34. Non-cash distributions
  35. Waiver of distributions
  36. CAPITALISATION OF PROFITS

  37. Authority to capitalise and appropriation of capitalised sums

  38. PART 4
    DECISION-MAKING BY SHAREHOLDERS
    ORGANISATION OF GENERAL MEETINGS

  39. Attendance and speaking at general meetings
  40. Quorum for general meetings
  41. Chairing general meetings
  42. Attendance and speaking by directors and non-shareholders
  43. Adjournment
  44. VOTING AT GENERAL MEETINGS

  45. Voting: general
  46. Errors and disputes
  47. Poll votes
  48. Content of proxy notices
  49. Delivery of proxy notices
  50. Amendments to resolutions

  51. PART 5
    ADMINISTRATIVE ARRANGEMENTS

  52. Means of communication to be used
  53. Company seals
  54. No right to inspect accounts and other records
  55. Provision for employees on cessation of business
  56. DIRECTORS’ INDEMNITY AND INSURANCE

  57. Indemnity
  58. Insurance

PART 1
INTERPRETATION AND LIMITATION OF LIABILITY

  1. Defined terms
  2. In the articles, unless the context requires otherwise—
    • “articles” means the company’s articles of association;
    • “bankruptcy” includes individual insolvency proceedings in a jurisdiction other than England and Wales or Northern Ireland which have an effect similar to that of bankruptcy;
    • “chairman of the meeting” has the meaning given in article 33;
    • “Companies Acts” means the Companies Acts (as defined in section 2 of the Companies Act 2006), in so far as they apply to the company;
    • “director” means a director of the company, and includes any person occupying the position of director, by whatever name called;
    • “distribution recipient” has the meaning given in article 25;
    • “document” includes, unless otherwise specified, any document sent or supplied in electronic form;
    • “electronic form” has the meaning given in section 1168 of the Companies Act 2006;
    • “fully paid” in relation to a share, means that the nominal value and any premium to be paid to the company in respect of that share have been paid to the company;
    • “hard copy form” has the meaning given in section 1168 of the Companies Act 2006;
    • “holder” in relation to shares means the person whose name is entered in the register of members as the holder of the shares;
    • “instrument” means a document in hard copy form;
    • “ordinary resolution” has the meaning given in section 282 of the Companies Act 2006;
    • “paid” means paid or credited as paid;
    • “proxy notice” has the meaning given in article 39;
    • "remote communication" means any electronic communication including telephone conference, video conference, the internet, or any other method currently available or developed in the future by which shareholders, or directors as the case may be, not present in the same physical location may simultaneously communicate with each other;
    • “shareholder” means a person who is the holder of a share;
    • “shares” means shares in the company;
    • “special resolution” has the meaning given in section 283 of the Companies Act 2006;
    • “subsidiary” has the meaning given in section 1159 of the Companies Act 2006;
    • “transmittee” means a person entitled to a share by reason of the death or bankruptcy of a shareholder or otherwise by operation of law; and
    • “writing” means the representation or reproduction of words, symbols or other information in a visible form by any method or combination of methods, whether sent or supplied in electronic form or otherwise.

    Unless the context otherwise requires, other words or expressions contained in these articles bear the same meaning as in the Companies Act 2006 as in force on the date when these articles become binding on the company.

  3. Liability of members
  4. The liability of the members is limited to the amount, if any, unpaid on the shares held by them.


  5. PART 2
    DIRECTORS
    DIRECTORS’ POWERS AND RESPONSIBILITIES

  6. Number of directors
  7. The board of directors consists of  director, who is a natural person aged at least eighteen years. Directors need not be shareholders in the company.
  8. Directors’ general authority
  9. Subject to the articles, the director is responsible for the management of the company’s business, for which purpose they may exercise all the powers of the company.
  10. Shareholders’ reserve power
    1. The shareholders may, by special resolution, direct the director to take, or refrain from taking, specified action.
    2. No such special resolution invalidates anything which the director has done before the passing of the resolution.
  11. Directors may delegate
    1. Subject to the articles, the director may delegate any of the powers which are conferred on them under the articles—
      1. to such person or committee;
      2. by such means (including by power of attorney);
      3. to such an extent;
      4. in relation to such matters or territories; and
      5. on such terms and conditions;
      as they think fit.
    2. If the director so specifies, any such delegation may authorise further delegation of the director's powers by any person to whom they are delegated.
    3. The director may revoke any delegation in whole or part, or alter its terms and conditions.
  12. Committees
    1. Committees to which the director delegates any of their powers must follow procedures which are based as far as they are applicable on those provisions of the articles which govern the taking of decisions by the director.
    2. The director may make rules of procedure for all or any committees, which prevail over rules derived from the articles if they are not consistent with them.


  13. DECISION-MAKING BY DIRECTORS

  14. Resolutions by director
    1. As long as the management of the company is by one sole director, the company will not hold directors’ meetings.
    2. The resolutions of the director will be made by the sole director recording the passage of each resolution in the company’s minute book and signing the record.
  15. Conflicts of interest
    1. The company, acting by a resolution of its members, may lend money to any director, officer, or employee of the company.
  16. Records of decisions to be kept
  17. The directors must ensure that the company keeps a record, in writing, for at least 10 years from the date of the decision recorded, of every unanimous or majority decision taken by the directors.
  18. Directors’ discretion to make further rules
  19. Subject to the articles, the directors may make any rule which they think fit about how they take decisions, and about how such rules are to be recorded or communicated to directors.


  20. APPOINTMENT OF DIRECTORS

  21. Methods of appointing directors
    1. Any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director—
      1. by ordinary resolution, or
      2. by a decision of the director(s).
    2. In any case where, as a result of death, the company has no shareholders and no directors, the personal representatives of the last shareholder to have died have the right, by notice in writing, to appoint a person to be a director.
    3. For the purposes of paragraph (b), where two or more shareholders die in circumstances rendering it uncertain who was the last to die, a younger shareholder is deemed to have survived an older shareholder.

  22. Termination of director’s appointment
  23. A person ceases to be a director as soon as—
    1. that person ceases to be a director by virtue of any provision of the Companies Act 2006 or is prohibited from being a director by law;
    2. a bankruptcy order is made against that person;
    3. a composition is made with that person’s creditors generally in satisfaction of that person’s debts;
    4. a registered medical practitioner who is treating that person gives a written opinion to the company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more than three months;
    5. notification is received by the company from the director that the director is resigning from office, and such resignation has taken effect in accordance with its terms.
  24. Director's remuneration
    1. The director may undertake any services for the company at the director's discretion.
    2. The director is entitled to such remuneration as the director may determine—
      1. for their services to the company as director, and
      2. for any other service which they undertake for the company.
    3. Subject to the articles, a director’s remuneration may—
      1. take any form, and
      2. include any arrangements in connection with the payment of a pension, allowance or gratuity, or any death, sickness or disability benefits, to or in respect of that director.
    4. Unless the director decides otherwise, the director's remuneration accrues from day to day.
    5. Unless the director decides otherwise, the director is not accountable to the company for any remuneration which they receive as director or other officer or employee of the company’s subsidiaries or of any other body corporate in which the company is interested.
  25. Directors’ expenses
  26. The company may pay any reasonable expenses which the directors properly incur in connection with their attendance at—
    1. meetings of directors or committees of directors,
    2. general meetings, or
    3. separate meetings of the holders of any class of shares or of debentures of the company, or otherwise in connection with the exercise of their powers and the discharge of their responsibilities in relation to the company.


  27. PART 3
    SHARES AND DISTRIBUTIONS
    SHARES

  28. All shares to be fully paid up
    1. No share is to be issued for less than the aggregate of its nominal value and any premium to be paid to the company in consideration for its issue.
    2. This does not apply to shares taken on the formation of the company by the subscribers to the company’s memorandum.

  29. One Class of Shares
  30. The company is authorised to issue a single class of shares with the following rights, privileges, restrictions and conditions:
    1. Class A Common Voting shares, without nominal par value, the holders of which are entitled:
      1. to receive notice, attend, and vote at all meetings of shareholders; and
      2. to a dividend as fixed by the director.
    2. In the event of liquidation, dissolution or winding up of the company or other distribution of the assets of the company among shareholders for the purpose of winding up its affairs, the holders of the class A common shares will be entitled to share equally, share for share, in the distribution of any remaining balance of the assets and properties of the company.

  31. Company not bound by less than absolute interests
  32. Except as required by law, no person is to be recognised by the company as holding any share upon any trust, and except as otherwise required by law or the articles, the company is not in any way to be bound by or recognise any interest in a share other than the holder’s absolute ownership of it and all the rights attaching to it.
  33. Share certificates
    1. The company must issue each shareholder, free of charge, with one or more certificates in respect of the shares which that shareholder holds.
    2. Every certificate must specify—
      1. in respect of how many shares, of what class, it is issued;
      2. the nominal value of those shares;
      3. that the shares are fully paid; and
      4. any distinguishing numbers assigned to them.
    3. No certificate may be issued in respect of shares of more than one class.
    4. If more than one person holds a share, only one certificate may be issued in respect of it.
    5. Certificates must—
      1. have affixed to them the company’s common seal, or
      2. be otherwise executed in accordance with the Companies Acts.
  34. Replacement share certificates
    1. If a certificate issued in respect of a shareholder’s shares is—
      1. damaged or defaced, or
      2. said to be lost, stolen or destroyed, that shareholder is entitled to be issued with a replacement certificate in respect of the same shares.
    2. A shareholder exercising the right to be issued with such a replacement certificate—
      1. may at the same time exercise the right to be issued with a single certificate or separate certificates;
      2. must return the certificate which is to be replaced to the company if it is damaged or defaced; and
      3. must comply with such conditions as to evidence, indemnity and the payment of a reasonable fee as the director decides.
  35. Share transfers
    1. Shares may be transferred by means of an instrument of transfer in any usual form or any other form approved by the directors, which is executed by or on behalf of the transferor.
    2. No fee may be charged for registering any instrument of transfer or other document relating to or affecting the title to any share.
    3. The company may retain any instrument of transfer which is registered.
    4. The transferor remains the holder of a share until the transferee’s name is entered in the register of members as holder of it.
    5. The director may refuse to register the transfer of a share, and if they do so, the instrument of transfer must be returned to the transferee with the notice of refusal unless they suspect that the proposed transfer may be fraudulent.
  36. Transmission of shares
    1. If title to a share passes to a transmittee, the company may only recognise the transmittee as having any title to that share.
    2. A transmittee who produces such evidence of entitlement to shares as the directors may properly require—
      1. may, subject to the articles, choose either to become the holder of those shares or to have them transferred to another person, and
      2. subject to the articles, and pending any transfer of the shares to another person, has the same rights as the holder had.
    3. But transmittees do not have the right to attend or vote at a general meeting, or agree to a proposed written resolution, in respect of shares to which they are entitled, by reason of the holder’s death or bankruptcy or otherwise, unless they become the holders of those shares.
  37. Exercise of transmittees’ rights
    1. Transmittees who wish to become the holders of shares to which they have become entitled must notify the company in writing of that wish.
    2. If the transmittee wishes to have a share transferred to another person, the transmittee must execute an instrument of transfer in respect of it.
    3. Any transfer made or executed under this article is to be treated as if it were made or executed by the person from whom the transmittee has derived rights in respect of the share, and as if the event which gave rise to the transmission had not occurred.
  38. Transmittees bound by prior notices
  39. If a notice is given to a shareholder in respect of shares and a transmittee is entitled to those shares, the transmittee is bound by the notice if it was given to the shareholder before the transmittee’s name has been entered in the register of members.


  40. DIVIDENDS AND OTHER DISTRIBUTIONS

  41. Procedure for declaring dividends
    1. The company may by ordinary resolution declare dividends, and the director may decide to pay interim dividends.
    2. A dividend must not be declared unless the director has made a recommendation as to its amount. Such a dividend must not exceed the amount recommended by the director.
    3. No dividend may be declared or paid unless it is in accordance with shareholders’ respective rights.
    4. Unless the shareholders’ resolution to declare or director's decision to pay a dividend, or the terms on which shares are issued, specify otherwise, it must be paid by reference to each shareholder’s holding of shares on the date of the resolution or decision to declare or pay it.
    5. If the company’s share capital is divided into different classes, no interim dividend may be paid on shares carrying deferred or non-preferred rights if, at the time of payment, any preferential dividend is in arrears.
    6. The director may pay at intervals any dividend payable at a fixed rate if it appears to them that the profits available for distribution justify the payment.
    7. If the director acts in good faith, they do not incur any liability to the holders of shares conferring preferred rights for any loss they may suffer by the lawful payment of an interim dividend on shares with deferred or non-preferred rights.
  42. Payment of dividends and other distributions
    1. Where a dividend or other sum which is a distribution is payable in respect of a share, it must be paid by one or more of the following means—
      1. transfer to a bank or building society account specified by the distribution recipient either in writing or as the director may otherwise decide;
      2. sending a cheque made payable to the distribution recipient by post to the distribution recipient at the distribution recipient’s registered address (if the distribution recipient is a holder of the share), or (in any other case) to an address specified by the distribution recipient either in writing or as the director may otherwise decide;
      3. sending a cheque made payable to such person by post to such person at such address as the distribution recipient has specified either in writing or as the director may otherwise decide; or
      4. any other means of payment as the director agrees with the distribution recipient either in writing or by such other means as the director decides.
    2. In the articles, “the distribution recipient” means, in respect of a share in respect of which a dividend or other sum is payable—
      1. the holder of the share; or
      2. if the share has two or more joint holders, whichever of them is named first in the register of members; or
      3. if the holder is no longer entitled to the share by reason of death or bankruptcy, or otherwise by operation of law, the transmittee.

  43. No interest on distributions
  44. The company may not pay interest on any dividend or other sum payable in respect of a share unless otherwise provided by—
    1. the terms on which the share was issued, or
    2. the provisions of another agreement between the holder of that share and the company.
  45. Unclaimed distributions
    1. All dividends or other sums which are—
      1. payable in respect of shares, and
      2. unclaimed after having been declared or become payable, may be invested or otherwise made use of by the director for the benefit of the company until claimed.
    2. The payment of any such dividend or other sum into a separate account does not make the company a trustee in respect of it.
    3. If—
      1. 12 years have passed from the date on which a dividend or other sum became due for payment, and
      2. the distribution recipient has not claimed it,
      the distribution recipient is no longer entitled to that dividend or other sum and it ceases to remain owing by the company.
  46. Non-cash distributions
    1. Subject to the terms of issue of the share in question, the company may, by ordinary resolution on the recommendation of the director, decide to pay all or part of a dividend or other distribution payable in respect of a share by transferring non-cash assets of equivalent value (including, without limitation, shares or other securities in any company).
    2. For the purposes of paying a non-cash distribution, the director may make whatever arrangements they think fit, including, where any difficulty arises regarding the distribution—
      1. fixing the value of any assets;
      2. paying cash to any distribution recipient on the basis of that value in order to adjust the rights of recipients; and
      3. vesting any assets in trustees.
  47. Waiver of distributions
  48. Distribution recipients may waive their entitlement to a dividend or other distribution payable in respect of a share by giving the company notice in writing to that effect, but if—
    1. the share has more than one holder, or
    2. more than one person is entitled to the share, whether by reason of the death or bankruptcy of one or more joint holders, or otherwise,
    the notice is not effective unless it is expressed to be given, and signed, by all the holders or persons otherwise entitled to the share.
  49. CAPITALISATION OF PROFITS

  50. Authority to capitalise and appropriation of capitalised sums
    1. Subject to the articles, the director may, if they are so authorised by an ordinary resolution—
      1. decide to capitalise any profits of the company (whether or not they are available for distribution) which are not required for paying a preferential dividend, or any sum standing to the credit of the company’s share premium account or capital redemption reserve; and
      2. appropriate any sum which they so decide to capitalise (a “capitalised sum”) to the persons who would have been entitled to it if it were distributed by way of dividend (the “persons entitled”) and in the same proportions.
    2. Capitalised sums must be applied—
      1. on behalf of the persons entitled, and
      2. in the same proportions as a dividend would have been distributed to them.
    3. Any capitalised sum may be applied in paying up new shares of a nominal amount equal to the capitalised sum which are then allotted credited as fully paid to the persons entitled or as they may direct.
    4. A capitalised sum which was appropriated from profits available for distribution may be applied in paying up new debentures of the company which are then allotted credited as fully paid to the persons entitled or as they may direct.
    5. Subject to the articles the director may—
      1. apply capitalised sums in accordance with paragraphs (c) and (d) partly in one way and partly in another;
      2. make such arrangements as they think fit to deal with shares or debentures becoming distributable in fractions under this article (including the issuing of fractional certificates or the making of cash payments); and
      3. authorise any person to enter into an agreement with the company on behalf of all the persons entitled which is binding on them in respect of the allotment of shares and debentures to them under this article.


  51. PART 4
    DECISION-MAKING BY SHAREHOLDERS
    ORGANISATION OF GENERAL MEETINGS

  52. Attendance and speaking at general meetings
    1. A person is able to exercise the right to speak at a general meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, any information or opinions which that person has on the business of the meeting.
    2. A person is able to exercise the right to vote at a general meeting when—
      1. that person is able to vote, during the meeting, on resolutions put to the vote at the meeting, and
      2. that person’s vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting.
    3. The directors may make whatever arrangements they consider appropriate to enable those attending a general meeting to exercise their rights to speak or vote at it.
    4. Use of remote communication is permitted in determining attendance at a general meeting and it is immaterial whether any two or more shareholders attending the meeting are in the same place as each other.
    5. Two or more persons who are not in the same place as each other attend a general meeting if their circumstances are such that if they have (or were to have) rights to speak and vote at that meeting, they are (or would be) able to exercise them by means of remote communication or by proxy.
  53. Quorum for general meetings
    1. A minimum of none percent of the shares entitled to vote, represented by persons counted in attendance at the meeting, will constitute a quorum entitled to take action at a meeting of shareholders.
    2. No business other than the appointment of the chairman of the meeting is to be transacted at a general meeting if the persons attending it do not constitute a quorum.
  54. Chairing general meetings
    1. If the directors have appointed a chairman, the chairman shall chair general meetings if present and willing to do so.
    2. If the directors have not appointed a chairman, or if the chairman is unwilling to chair the meeting or is not present within 10 minutes of the time at which a meeting was due to start—
      1. the directors present, or
      2. (if no directors are present), the meeting,
      must appoint a director or shareholder to chair the meeting, and the appointment of the chairman of the meeting must be the first business of the meeting.
    3. The person chairing a meeting in accordance with this article is referred to as “the chairman of the meeting”.
  55. Attendance and speaking by directors and non-shareholders
    1. Directors may attend and speak at general meetings, whether or not they are
      shareholders.

    2. The chairman of the meeting may permit other persons who are not—
      1. shareholders of the company, or
      2. otherwise entitled to exercise the rights of shareholders in relation to general meetings,
      to attend and speak at a general meeting.
  56. Adjournment
    1. If the persons attending a general meeting within half an hour of the time at which the meeting was due to start do not constitute a quorum, or if during a meeting a quorum ceases to be present, the chairman of the meeting must adjourn it.
    2. The chairman of the meeting may adjourn a general meeting at which a quorum is present if—
      1. (a) the meeting consents to an adjournment, or
      2. it appears to the chairman of the meeting that an adjournment is necessary to protect the safety of any person attending the meeting or ensure that the business of the meeting is conducted in an orderly manner.
    3. The chairman of the meeting must adjourn a general meeting if directed to do so by the meeting.
    4. When adjourning a general meeting, the chairman of the meeting must—
      1. either specify the time and place to which it is adjourned or state that it is to continue at a time and place to be fixed by the directors, and
      2. have regard to any directions as to the time and place of any adjournment which have been given by the meeting.
    5. If the continuation of an adjourned meeting is to take place more than fourteen days after it was adjourned, the company must give at least seven clear days’ notice of it (that is, excluding the day of the adjourned meeting and the day on which the notice is given)—
      1. to the same persons to whom notice of the company’s general meetings is required to be given, and
      2. containing the same information which such notice is required to contain.
    6. No business may be transacted at an adjourned general meeting which could not properly have been transacted at the meeting if the adjournment had not taken place.

  57. VOTING AT GENERAL MEETINGS

  58. Voting: general
  59. A resolution put to the vote of a general meeting must be decided on a show of hands unless a poll is duly demanded in accordance with the articles.
  60. Errors and disputes
    1. No objection may be raised to the qualification of any person voting at a general meeting except at the meeting or adjourned meeting at which the vote objected to is tendered, and every vote not disallowed at the meeting is valid.
    2. Any such objection must be referred to the chairman of the meeting, whose decision is final.
  61. Poll votes
    1. A poll on a resolution may be demanded—
      1. in advance of the general meeting where it is to be put to the vote, or
      2. at a general meeting, either before a show of hands on that resolution or immediately after the result of a show of hands on that resolution is declared.
    2. A poll may be demanded by—
      1. the chairman of the meeting;
      2. the directors;
      3. two or more persons having the right to vote on the resolution; or
      4. a person or persons representing not less than one tenth of the total voting rights of all the shareholders having the right to vote on the resolution.
    3. A demand for a poll may be withdrawn if—
      1. the poll has not yet been taken, and
      2. the chairman of the meeting consents to the withdrawal.
    4. Polls must be taken immediately and in such manner as the chairman of the meeting directs.
    5. Where the poll relates to the appointment of one or more directors, cumulative voting will be used whereby each shareholder will get one vote per voting share multiplied by the number of directors to be elected and the votes may be distributed among the candidate directors as each shareholder sees fit.
  62. Content of proxy notices
    1. Proxies may only validly be appointed by a notice in writing (a “proxy notice”) which—
      1. states the name and address of the shareholder appointing the proxy;
      2. identifies the person appointed to be that shareholder’s proxy and the general meeting in relation to which that person is appointed;
      3. is signed by or on behalf of the shareholder appointing the proxy, or is authenticated in such manner as the directors may determine; and
      4. is delivered to the company in accordance with the articles and any instructions contained in the notice of the general meeting to which they relate.
    2. The company may require proxy notices to be delivered in a particular form, and may specify different forms for different purposes.
    3. Proxy notices may specify how the proxy appointed under them is to vote (or that the proxy is to abstain from voting) on one or more resolutions.
    4. Unless a proxy notice indicates otherwise, it must be treated as—
      1. allowing the person appointed under it as a proxy discretion as to how to vote on any ancillary or procedural resolutions put to the meeting, and
      2. appointing that person as a proxy in relation to any adjournment of the general meeting to which it relates as well as the meeting itself.
  63. Delivery of proxy notices
    1. A person who is entitled to attend, speak or vote (either on a show of hands or on a poll) at a general meeting remains so entitled in respect of that meeting or any adjournment of it, even though a valid proxy notice has been delivered to the company by or on behalf of that person.
    2. An appointment under a proxy notice may be revoked by delivering to the company a notice in writing given by or on behalf of the person by whom or on whose behalf the proxy notice was given.
    3. A notice revoking a proxy appointment only takes effect if it is delivered before the start of the meeting or adjourned meeting to which it relates.
    4. If a proxy notice is not executed by the person appointing the proxy, it must be accompanied by written evidence of the authority of the person who executed it to execute it on the appointor’s behalf.
  64. Amendments to resolutions
    1. An ordinary resolution to be proposed at a general meeting may be amended by ordinary resolution if—
      1. notice of the proposed amendment is given to the company in writing by a person entitled to vote at the general meeting at which it is to be proposed not less than 48 hours before the meeting is to take place (or such later time as the chairman of the meeting may determine), and
      2. the proposed amendment does not, in the reasonable opinion of the chairman of the meeting, materially alter the scope of the resolution.
    2. A special resolution to be proposed at a general meeting may be amended by ordinary resolution, if—
      1. the chairman of the meeting proposes the amendment at the general meeting at which the resolution is to be proposed, and
      2. the amendment does not go beyond what is necessary to correct a grammatical or other non-substantive error in the resolution.
    3. If the chairman of the meeting, acting in good faith, wrongly decides that an amendment to a resolution is out of order, the chairman’s error does not invalidate the vote on that resolution.


  65. PART 5
    ADMINISTRATIVE ARRANGEMENTS

  66. Means of communication to be used
    1. Subject to the articles, anything sent or supplied by or to the company under the articles may be sent or supplied in any way in which the Companies Act 2006 provides for documents or information which are authorised or required by any provision of that Act to be sent or supplied by or to the company.
    2. Subject to the articles, any notice or document to be sent or supplied to a director in connection with the taking of decisions by directors may also be sent or supplied by the means by which that director has asked to be sent or supplied with such notices or documents for the time being.
    3. A director may agree with the company that notices or documents sent to that director in a particular way are to be deemed to have been received within a specified time of their being sent, and for the specified time to be less than 48 hours.
  67. Company seals
    1. Any common seal may only be used by the authority of the director.
    2. The director may decide by what means and in what form any common seal is to be used.
    3. Unless otherwise decided by the director, if the company has a common seal and it is affixed to a document, the document must also be signed by at least one authorised person in the presence of a witness who attests the signature.
    4. For the purposes of this article, an authorised person is—
      1. any director of the company;
      2. the company secretary (if any); or
      3. any person authorised by the director for the purpose of signing documents to which the common seal is applied.
  68. No right to inspect accounts and other records
  69. Except as provided by law or authorised by the director or an ordinary resolution of the company, no person is entitled to inspect any of the company’s accounting or other records or documents merely by virtue of being a shareholder.
  70. Provision for employees on cessation of business
  71. The directors may decide to make provision for the benefit of persons employed or formerly employed by the company or any of its subsidiaries (other than a director or former director or shadow director) in connection with the cessation or transfer to any person of the whole or part of the undertaking of the company or that subsidiary.

  72. DIRECTORS’ INDEMNITY AND INSURANCE

  73. Indemnity
    1. Subject to paragraph (b), a relevant director of the company or an associated company may be indemnified out of the company’s assets against—
      1. any liability incurred by that director in connection with any negligence, default, breach of duty or breach of trust in relation to the company or an associated company,
      2. any liability incurred by that director in connection with the activities of the company or an associated company in its capacity as a trustee of an occupational pension scheme (as defined in section 235(6) of the Companies Act 2006),
      3. any other liability incurred by that director as an officer of the company or an associated company.
    2. This article does not authorise any indemnity which would be prohibited or rendered void by any provision of the Companies Acts or by any other provision of law.
    3. In this article—
      1. companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate, and
      2. a “relevant director” means any director or former director of the company or an associated company.
  74. Insurance
    1. The director may decide to purchase and maintain insurance, at the expense of the company, for the benefit of any relevant director in respect of any relevant loss.
    2. In this article—
      1. a “relevant director” means any director or former director of the company or an associated company,
      2. a “relevant loss” means any loss or liability which has been or may be incurred by a relevant director in connection with that director’s duties or powers in relation to the company, any associated company or any pension fund or employees’ share scheme of the company or associated company, and
      3. companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate.

Articles of Association Frequently Asked Questions

Articles of Association may also be known as:

  • Model articles
  • Business incorporation papers
  • Company constitution
  • Memorandum of association

What are Articles of Association?

Articles of Association outline how the shareholders and directors of a limited company must operate. A company creates this governing document during the incorporation process in the United Kingdom.

An Articles of Association template allows an incorporating company to create a set of rules that is custom to its unique needs and in compliance with applicable legislation. Use LawDepot’s Articles of Association template to customise your own company papers.

What are model Articles of Association?

Model Articles of Association are the default set of governing rules for incorporating companies prescribed by the Companies Act 2006. Companies House, the United Kingdom’s registry for limited companies, provides model articles.

However, if you want to customise your model articles to your company's needs, you can do so by completing Law Depot's Articles of Association questionnaire.

What is the purpose of Articles of Association?

Articles of Association provide a company with a set of rules to follow. This ensures transparency and fairness for everyone with a stake in a company and for third parties doing business with the company.

Without Articles of Association, directors and shareholders could face ongoing disagreements about how to operate the company. With a clear set of rules, directors and shareholders can manage the company consistently and fairly.

Does a company need Articles of Association?

Yes, if a company is incorporating within the United Kingdom, the company must create Articles of Association. Under the Companies Act 2006, the UK government requires companies to create Articles of Association during the incorporation process.

The UK government also requires companies to create a memorandum of association during the incorporation process which documents all the names of the initial shareholders and directors of a company.

Companies with more than one shareholder should also create a Shareholder Agreement. This document is a contract between the shareholders of a corporation. The contents in a Shareholder Agreement depends on the corporation and the shareholders, but it mainly outlines shareholder rights and responsibilities. Unlike Articles of Association, you can keep Shareholder Agreements private from the public.

What do the Articles of Association include?

When a company is in the process of creating its Articles of Association, the individual(s) creating the document should provide information for the following areas:

  • Company structure: specify if the company has a sole director or multiple directors
  • Shares: specify the number of share classes as well as share transfer and redeemability details
  • Shareholder decision-making process: outline the rules and requirements for shareholder meetings
  • Directors’ powers and responsibilities: set out the number of directors, as well as their capabilities and limitations
  • Directors’ decision-making process: specify the rules and requirements for director meetings
  • Appointment of directors: outline the rules for appointing new directors in the future
  • Dividends and other distributions: specify how the company pays out dividends and other distributions (a dividend is a sum of money that a company pays to its shareholders out of its profits)

Can a company amend the Articles of Association?

Yes, a company can update or change its Articles of Association. A company may need to change its governing documentation for a variety of reasons, such as complying with a new law or court order.

To amend Articles of Association, a company’s directors need to agree on the change(s) in a Directors' Resolution, which is a written way for directors to document a decision they made. Creating this agreement will likely require a directors’ meeting.

Once agreed upon, the company must send the new Articles of Association, the Directors’ Resolution, and any other important documentation to Companies House.

What is Companies House?

In the United Kingdom, Companies House is the registry that incorporates or dissolves limited companies. Companies that want to incorporate must file their incorporation paperwork with the registry.

Companies House’s main responsibilities are to:

  • Incorporate limited companies
  • Dissolve limited companies
  • Store and examine company information
  • Ensure company information is available to the public

Are my company’s Articles of Association public?

Yes, once registered with Companies House, a company’s Articles of Association are public documents.

It’s important that Articles of Association documents are available to the public because consumers and potential members need transparency about the companies that they choose to support or get involved with.

What happens if a company doesn’t create Articles of Association?

If a company fails to create its own Articles of Association, legislation provides the company with default articles. The default articles are legally sound and protect the rights and responsibilities of members but aren’t customised to the unique needs of a specific company.

Related Documents:

  • Shareholder Agreement: Outlines company policies regarding shareholder rights and responsibilities, share ownership and valuation, financial management, dispute resolution, and more.
  • Directors' Resolution: Creates a written record of an action or decision made by a company's board of directors.
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