What articles of association will my new company have?
Your company's articles of association are effectively the rules of the company and ensure it's smooth running by setting out how decisions can be made.
When you form your new company with us at Lightwork Business we issue a template set of articles of association which are based upon the model articles set out in schedules 1-3 of the Companies (Model Articles) Regulations 2008 (SI No. 3229) but also include some key amendments.
The following key enhancements have been made to Lightwork's Articles to handle identified shortfalls in the model Articles:
- We make proper provision for different classes of shares.
- We add additional provision for member's rights, proxies, meeting regimes, share pre-emption and director conflicts.
- We allow the company to buy back its own shares in certain circumstances (e.g. if the company's shares are valued at less than £15,000).
- We have removed the Chairman's right to have a casting vote at Director's meetings as we believe it is more appropriate in a small private company that the Chairman does NOT have a casting vote.