Following proposals from a number of business organisations, the Government issued its November 2016 Green Paper on Corporate Governance Reform in order to understand the strengths and weaknesses of business practices in the UK. In its response to the Government’s consultation, the Financial Reporting Council (FRC) recommend that director’s duties, governed by the Companies Act…
Company & commercial
In any company, the Articles of Association are critical – they bind the members and govern the way in which the company is run.
Who appoints and dismisses the directors? Are any issues reserved for unanimous or qualified majority decision? Are minority interests protected? Are there suitable restrictions on the transfer of shares outside the family or other chosen group? Such questions must be regulated in the Articles because they will govern the legal position in the event of a dispute.