6f Articles of Association

Question 1

What are the articles of association?

Answer 1

Articles that form part of the company’s internal constitution which set out how the company will be governed and regulate the relationship between the company and its shareholders.

Question 2

Can the company come up with their own articles of association?

Answer 2

Yes, when forming the company they can provide their own, if not model articles are prescribed by the Secretary of State.

Question 3

What do the articles bind?

Answer 3

Company to memebers.
Members to company.
Members to eachother.

Question 4

What do the articles not bind?

Answer 4

The company to non-members.
The members in any other capacity; articles only protect members rights as a member, nothing else.

Question 5

Can the articles be amended and if so what is required to do so?

Answer 5

Yes, can be altered by special resolution of the shareholders with a 75% majority and amended copies must be sent to the registrar within 15 days.

Question 6

Do members who didn’t vote to amend the articles, have to increase their liability?

Answer 6

No.