Shareholders resolutions to amend Articles of Association
Shareholder resolution to amend the existing Articles of Association or to adopt new Articles of Association, in the form of a written shareholder resolution.
Read more
When do I use this document?
- to amend the Articles of Association or to adopt new Articles of Association
- when the resolution is proposed as a written shareholder resolution
- if the resolution is to be approved at a general meeting, in conjunction with our template general meeting notice Shareholder meeting notice
What are the key features?
- special resolution to be passed as a written resolution
- alternative forms of the resolution depending on whether specific amendments to the Articles of Association are being made or if a new form of Articles of Association will be adopted
What else do I need to know?
A company can amend its Articles of Association by a special resolution of shareholders. The amendment can be either:
- changes to the existing Articles of Association, which may include:
- deleting words, phrases or sentences from specific Articles or removing specific Articles and/or
- adding words, phrases or sentences to specific Articles or adding new Articles
- adopting an entirely new set of Articles of Association
If a company amends its Articles of Association, it must send a copy of the amended Articles to Companies House no later than 15 days after the amendment takes effect.
When do I use this document?
- as an advance subscription agreement between the company and a single investor
- where the conversion price will be calculated as a percentage discount to the issue price for shares in the qualified investment round
- if agreed, where there is an agreed valuation cap on the company’s valuation
What are the key features?
- advance subscription terms and payment
- conversion on the occurrence of defined events, including a qualifying financing round, the sale of the company or on a longstop date
- conversion price on a qualified financing round to be at an agreed percentage discount to the qualified financing round share price
- if agreed, a cap on the valuation of the company for the purpose of calculating the conversion price
- warranties regarding the investor’s compliance with Financial Services and Markets Act 2000 regime regarding financial promotions
What else do I need to know?
For detailed discussion regarding the purpose of advance subscription agreements and their benefits and disadvantages for investors and the company, click here.
Negotiating points
Prior to entering into this ASA, the parties will need to consider and agree:
- discount rate: the discounted price per share (expressed as a percentage) at which the ASA investor will receive shares in the qualified financing round
- valuation cap: if agreed, the cap on the valuation of the company for the purpose of calculating the price at which the advance subscription will convert into shares on a qualified investment round
- default valuation: the default valuation of the company which will be used to calculate the conversion price of the advance subscription in circumstances where conversion occurs on the agreed longstop date or the company’s insolvency
- longstop date: the longstop date on which (and in the absence of a prior qualifying financing round) the ASA will automatically convert into shares
- qualified financing round: the minimum amount of funding which the company must raise before that funding round will count as the qualified financing round under the ASA which results in the conversion of the advance subscription into shares
- subscription amount: the amount of the investor’s advance subscription
Related Articles
Sorry, we couldn't find any posts. Please try a different search.
£35.00 exc VAT
Updated by a lawyer on 30/05/2025
- Updated By a lawyer on
- Guidance notes included
- No hidden extras
- Easily customisable
Create your document in 3 Easy Steps
- Download
- Customise
- Share & Sign
PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.
“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”
Amanda | Bannister Creative
£35.00 exc VAT
- Written by expert lawyers
- Quick to download
- Easy to customise
- No hidden extras
- free re-downloads
“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”
Elle, Founder | Winslow skincare & aesthetics.
“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”
Giles, MD | Boniti Ltd.
