When do changes to a company’s articles take effect?
Every UK company has its own ‘articles of association’ – the rules which govern the company’s internal administration. The company’s members can agree to change the articles but when will those changes take effect? Corporate Partner Sophie Brookes explains the process.
The nature of articles
A company’s articles are a contract between the company and its members, and also between the members themselves. They set out various matters relating to the on-going operation and administration of the company, typically dealing with things such as:
Rights attaching to shares, including dividends, capital and voting rights
Transfer of shares
Shareholders’ meetings
Directors’ meetings
Appointment and removal of directors