WHAT ARE THE ARTICLES AND MEMORANDUM?

When a Company is formed in England & Wales, it needs its own constitution to regulate the shareholder’s rights and the Company powers. The constitution is made up of:-

• Memorandum of Association – deals with name, location, objects of the Company, contains a statement as the liability of its members and details of its share capital and the shareholders’ names

• Articles of Association – deals with the Company rules for internal regulation and management, including the Director’s powers.

The introduction of the Companies Act 2006  saw the availability of simpler “model frameworks” to make things easier for private companies when starting out.