Articles of Association for a wholly-owned company, amending and supplimenting the Companies Act 2006 Model Articles, for use where the company has a single shareholder and is 100% owned either by an individual shareholder or by another company as part of a corporate group.
Read moreThe Articles of Association of a company are the rules which govern the operation and management of a company. They operate as a contract between the shareholders and the company. The directors are under a statutory duty to act in accordance with its Articles of Association.
The Companies Act 2006 provides a model set of Articles of Association, known as the Model Articles, which companies can adopt unless they choose to have their own separate form of Articles of Association. Unless varied or replaced by a different set of Articles of Association, the Model Articles will apply. On formation of a company, the registration process requires a company either to confirm that the Model Articles will apply or to provide its own set of Articles of Association.
For a company which has two or more shareholders, the Model Articles should be amended or replaced by the company’s own form of Articles of Association.
Where a company is 100% owned by a single shareholder, the Model Articles will operate adequately in most circumstances. However, there are circumstances where a wholly-owned company might benefit from its own set of Articles of Association, such as:
This requires a special shareholder resolution. For simplicity, this can be passed as a written resolution signed by the sole shareholder.
Once adopted, the new Articles of Association (and shareholder resolution) will need to be filed at Companies House within 15 days of the passing of the shareholder resolution.
For examples of Articles of Association where the company has more than one shareholder, see
Following the closing of a share sale transaction, the seller will remain the registered owner of the shares which have been sold until the buyer has paid the necessary stamp duty. This process can take a number of weeks. The transfer of the sale shares cannot be registered in the register of members of the target company until the stamp duty has been paid.
The buyer will want to be able to exercise all the rights as the owner of the sale shares notwithstanding that the seller remains the registered legal owner of the sale shares. To enable the buyer to do this, the buyer will usually require that the seller grants a power of attorney in favour of the buyer which enables the buyer to exercise the legal rights of ownership of the sale shares.
If a share transfer involves consideration exceeding £1,000, stamp duty will be payable to HMRC and HMRC will need to confirm that the stamp duty has been paid. This stamping process typically takes a few weeks and involves payment of the stamp duty and submission of the stock transfer by email to HMRC for HMRC to confirm the payment.
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Updated by a lawyer on 21/07/2025
£35.00 exc VAT




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