Custom Articles of Association

Your company’s foundational constitutional document is, in legal terms, referred to as Articles of Association or Articles.  One of its main purposes is the regulation of the relationship between shareholders, directors and the company as well as the relationship between the company and the outside world.

When a company is registered with Companies House you are automatically presented with standard Articles of Association.  If you have the standard model articles which are published by the Government, the latest version for private companies limited by shares being the 2013 edition, there are many issues that are not covered, for example restrictions on shares, vesting, good leaver/bad leaver provisions etc.

Over and above a custom Articles of Association, minimising legal and commercial risks associated with the business, serves as a very important instrument to ensure the survival of the business.

Certain provisions of the Companies Act are permitted to be amended, but can only be done through a custom Articles of Association.  The Articles of Association is a public document as they are filed with Companies House after being adopted by special resolution.  The Articles of Association provide an ideal mechanism for regulating all aspects of the company and, to the greatest extent possible, minimising regulatory burdens.