Articles of Association. What is it?
The Articles of Association are a multi-page document, so called a ‘rule book’, which is agreed by the directors and shareholders of a company. This document is made of the articles and memorandum of association and any resolutions and agreements between the members of your company.
The Articles of Association are one of the principal company formation documents. They are included as a part of company registration application.
Most companies use ‘Model’ articles prescribed by the Companies Act 2006, but each company can draft their own articles which suit your company particular circumstances.
The model articles include the following:
· regulations on the rights of shareholders;
· appointment of directors;
· procedure for various matters such as general meetings;
· issuance of shares;
· distribution of dividends.
The model articles can be amended to include additional resolutions or agreements.
Once your company is registered at Companies House, you will be provided with your company formation documents, which include the articles of association, memorandum and certificate of incorporation, along with share certificates.
You should keep your company formation documents safe in your company register.
All directors and shareholders of the Company should be provided with a copy of the articles.
Company members are able to change the Articles of Association by issuing a special resolution which must by submitted along with a new edition of articles within 15 days of the resolution.