Model Articles - Companies act 2006

Under the companies Act 1985 specimen articles of association were provided in the form of "Table A." The Companies Act 2006 provides a set of "model Articles" for companies.

Companies formed after 1 October 2009 will, in the absence of specifically tailored articles, be formed by reference to the Model Articles rather than Table A. Companies formed before1 October 2009 can (whilst there is no legal obligation to do so) choose to adopt some or all of the Model Articles.

Companies may wish to review, update and amend their articles of association in light of the 2006 Act and the Model Articles as the changes made under the 2006 Act attempted to remove much of the "red tape" for directors of OMB and SME companies.

For example the 2006 Act removed the concept of an authorised share capital in order to provide more flexibility for directors to issue shares.

In general the 2006 Act proceeded on the basis that a company can do various things unless a specific article prevents it from doing so. Consequently companies may wish to consider whether to add certain restrictions on powers which the directors will not otherwise have.

For more information and to contact us with regards to your company's articles, and that they are inline with the business needs of your company, go to www.orj.co.uk/corporate.php or call us on 01785 223440.