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Articles of association templates
We offer a range of alternative Articles of Association templates, tailored to suit the ownership structure of your company. Whether your company is wholly-owned, equally owned by two shareholders or owned by a number of shareholders with majority/minority shareholdings, we have the appropriate Articles of Association templates to accommodate your needs.
Additionally, new Articles of Association may be necessary as part of an investment transaction and we have a selection of different forms of Articles of Association for use in investment transactions, depending on the structure of the investment.
Articles of Association for a wholly-owned company
The Companies Act 2006 provides a standard set of Articles of Association for a private company limited by shares, known as the Model Articles, which companies can adopt on incorporation unless they choose to have their own customised form of Articles of Association. If not altered or replaced, the Model Articles automatically apply.
While a wholly-owned company with a single shareholder may find the Model Articles sufficient in most circumstances, there are scenarios where having its own set of Articles could be advantageous, such as:
- where the company has a single director.
- where the company has one or more directors who are not the sole shareholder.
- where a director may need to vote as a director on transactions between themselves and the company.
- for future administrative matters, like the company purchasing its own shares or a proposed amendment to its name
Articles of Association for a company with two or more shareholders
In conjunction with a Shareholders Agreement between two or more shareholders (including where the company is incorporated with two or more initial shareholders), the shareholders should also consider adopting a new form of Articles of Association which align with their shareholdings and the Shareholders Agreement. This can be done by special resolution of shareholders and by filing the new Articles at Companies House, These Articles typically address various aspects such as:
- procedures for the allotment of additional shares, including shareholder rights of first refusal
- regulations concerning the transfers of shares
- rules for shareholder meetings
- rights relating to the appointment of directors, the conduct of board or directors’ meetings and conflicts of interest (including whether a director may vote or must abstain from voting)
frequentlyasked questions
What are Articles of Association?
Articles of Association are a company’s internal constitution. They set out how the company is run, including share rights, the appointment and powers of directors and procedures for directors and shareholder meetings.
All UK companies must have Articles of Association. Many adopt the standard ‘Model Articles’ provided under the Companies Act 2006. However, these can be amended or replaced entirely with bespoke articles to suit the company’s ownership structure or specific requirements – for example, if there are multiple shareholders or if investor rights need to be reflected.
Are Articles of Association legally binding?
Yes. Articles of Association form a legally binding contract between the company and its shareholders, and between the shareholders themselves in their capacity as members.
Once adopted, both the company and its members must follow the rules set out in the articles. They can be enforced in court if breached, for example where directors act outside their powers or meetings are held improperly.
Are Articles of Association the same as bylaws?
Not exactly. ‘Bylaws’ is a US term. In the UK, the equivalent is Articles of Association. While they serve a similar purpose (governing internal company operations), the term ‘bylaws’ is not typically used in UK company law.
Articles of Association in the UK are formal constitutional documents, filed with Companies House and legally binding. In contrast, bylaws in some jurisdictions can be informal or non-binding and are generally not registered publicly.
Can you write your own Articles of Association?
Yes. Companies can draft and adopt their own Articles of Association instead of using the standard Model Articles. This is often advisable where the company has more than one shareholder or class of shares or requires specific rules for things like share transfers, voting rights or director powers.
Tailored Articles of Association must be adopted by special resolution of shareholders (75% approval). Once adopted, they must be filed with Companies House.
Are Articles of Association confidential?
No. Articles of Association are public documents. When a company is incorporated or updates its articles, a copy must be filed with Companies House. These documents are then available for anyone to view via the Companies House register.
Because they are publicly accessible, sensitive commercial arrangements are often placed in a private shareholders’ agreement instead.
Can Articles of Association be changed?
Yes. Articles of Association can be changed at any time by passing a special resolution (at least 75% shareholder approval) and filing the new articles with Companies House.
Changes might be needed to reflect new shareholders, an investment transaction or changes to director powers or share rights. It’s good practice to align the articles with any shareholders’ agreement to avoid inconsistencies.
Certain provisions in the Articles of Association can be entrenched to give specific rights to a shareholder – for example, a veto over particular decisions or the right to appoint a director. Entrenchment means that these rights cannot be changed in the usual way (by special resolution). Instead, they can only be altered or removed if the conditions for amendment, as stated in the Articles, are met — which might include requiring unanimous shareholder consent or the written agreement of the affected shareholder. Any entrenchment must be clearly drafted and notified to Companies House when the articles are registered or amended.
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