The Companies Act 2006 came into effect fully on 1 October 2009.
One of the advantages of the Act is that it has made the incorporation of a company easier by creating a new and simplified set of model articles of incorporation.
However, before you rush off and buy an ‘off the shelf’ company, pause to consider this – it is usually much more sensible to start with the right articles than to amend ‘standard’ articles to say what you mean later.
Articles tend to be of little importance to directors and shareholders until the company has ‘grown up’ a bit – by which time vested interests can be strong and changes to the internal regulations, such as alteration of share capital rights and so on, can be difficult and full of hidden pitfalls. These sorts of issues can prove a disaster when there are discussions ongoing relating to the retirement of director-shareholders or a proposed purchase of the business or of a shareholding in it.
We can advise you on all matters relating to setting up in business.
Partner Note
The Companies (Model Articles) Regulations 2008 can be found at http://www.opsi.gov.uk/si/si2008/uksi_20083229_en_1.