New model ‘articles’ for companies
With effect from 1 October 2009 three new types of model articles of association (usually referred to as ‘articles’) are available to both newly incorporated companies and for adoption by existing companies.
A company’s articles are essentially its internal rulebook. Whilstevery company must, by law, have articles the use of model articles is optional. Where a company decides to draw up its own articles it should ensure that these are compliant with all the relevant legislation.
The new model articles have been designed to reflect updated provisions of company law, to avoid the use of archaic and legalistic language wherever possible and to avoid duplication of the provisions of the Companies Act 2006 governing procedural matters.
The three types of model articles are designed respectively for:
- Public companies
- Private companies limited by guarantee
- Private companies limited by shares
The Department for Business Innovation & Skills have published a detailed guide explaining the changes.