Articles of association for uk limited company.14 July 2019
Articles of association is a common term that required when you register a limited company. It basically acts as an internal rule book, which each company is legally required to have. Having the articles of association in place helps to manage the business much smoothly and efficiently. Article of association is a guideline which indicates the rights and obligation of all involved parties. They also speculate how decisions are supposed to be addressed by members and directors and it looks into various issues regarding the shares of the company.
The company is perfectly entitled to formulate their own articles of association with the only requirement being that the rules can not be against the existing law. But if they have a perfectly law abiding collection of rules and regulations, then they are free to devise their own articles of association. However, more often it is easier to rely on model articles as default positions. This is because it would be considered better practice to seek external, professional advice if they were wanting to create their own articles of association.
The model articles should be more than adequate for a standard firm. It is essentially a safety resource that has been tried and tested. They are suitable for private companies limited by shares, private companies limited by guarantee and public companies. When you come to setting up a ltd company you will need to speculate whether you will be using an existing model article, making amendments to a model article or devising your own. However, when you come to register your company you will have the opportunity to the relevant model article for your company type. Using Company Formations 123 will obviously offer guidance and provide that specialist knowledge that you may find beneficial in the company registration process.