Articles of Association are the legal rules that govern how a company operates internally.
Articles of Association are a company's internal rulebook. They set out how your business runs day-to-day.
Think of them as your company's constitution. Every limited company in the UK and Ireland must have them (although in Ireland they are called the "Constitution" since 2014).
These documents cover key areas like how meetings work, who makes decisions, and how shares get transferred.
They're legally binding once filed with Companies House (UK) or the Companies Registration Office (Ireland).
Your Articles of Association give your business structure and legal protection.
They prevent disputes by setting clear rules from the start. Without proper articles, you might face problems when bringing in investors or selling shares later.
Many founders use standard template articles when starting out. However, as your business grows, you may need to customise them.
This is especially important if you plan to raise investment or have multiple founders.
Articles of Association work alongside your company's Memorandum of Association. Together, these form your constitutional documents.
The articles focus on internal operations, while the memorandum covers your company's relationship with the outside world.
You can change your articles later by passing a special resolution. This requires 75% of shareholders to agree.
Any changes must be filed with the relevant companies registry.
Review your articles before major business changes. This includes taking on investors, adding new directors, or changing your business model.
Professional legal advice is often worth the investment, especially for growing companies.
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