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Order of Objects

Re: Order of Objects

Postby atticus » Thu Feb 12, 2015 7:59 pm

NO, that is the Articles of Association.
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Re: Order of Objects

Postby Hairyloon » Thu Feb 26, 2015 2:41 am

Presumably though, whatever you call the document, a company still has to have objects?
But what would happen if the directors decided to ignore the objects and do something else?
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Re: Order of Objects

Postby miner » Thu Feb 26, 2015 2:57 am

Hairyloon wrote:Presumably though, whatever you call the document, a company still has to have objects?
But what would happen if the directors decided to ignore the objects and do something else?


SFA.
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Re: Order of Objects

Postby atticus » Thu Feb 26, 2015 10:54 am

A company is no longer required to have objects.

s31 Companies Act 2006 provides that a company's objects will be unrestricted unless the articles of association specifically restrict them. This applies to both new and existing companies.

I cannot see that the SFA will take any interest in a complaint solely about a company's objects.
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Re: Order of Objects

Postby Hairyloon » Thu Feb 26, 2015 11:09 am

atticus wrote:s31 Companies Act 2006 provides that a company's objects will be unrestricted unless the articles of association specifically restrict them. This applies to both new and existing companies.

OK, so if a company specifically restricts its objects, and its directors decide to ignore them, is there any repercussion?

I cannot see that the SFA will take any interest in a complaint solely about a company's objects.

I don't believe that one is in the glossary.
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Re: Order of Objects

Postby atticus » Thu Feb 26, 2015 11:21 am

Potentially; I expect more often by shareholders' action.
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Re: Order of Objects

Postby miner » Thu Feb 26, 2015 2:51 pm

atticus wrote:Potentially; I expect more often by shareholders' action.


Yes.

SFA as used by me above = Sweet Fanny Adams or (alternative of Sweet F*** All, not the Scottish Football Association.
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Re: Order of Objects

Postby Hairyloon » Thu Feb 26, 2015 3:16 pm

atticus wrote:Potentially; I expect more often by shareholders' action.

What would they be able to do? I assume they could dismiss the director, but is there anything more?

If the balance of shareholders is not unhappy about the deviation from the objects, then nothing much would happen.
It seems to me that the governing document of a company does not do much by way of governing if it is so easily ignored.
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Re: Order of Objects

Postby atticus » Thu Feb 26, 2015 3:24 pm

Shareholder may take action against directors. Part 11 of the Companies Act 2006.
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Re: Order of Objects

Postby miner » Thu Feb 26, 2015 4:17 pm

Hairyloon wrote:
atticus wrote:Potentially; I expect more often by shareholders' action.

What would they be able to do? I assume they could dismiss the director, but is there anything more?

If the balance of shareholders is not unhappy about the deviation from the objects, then nothing much would happen.
It seems to me that the governing document of a company does not do much by way of governing if it is so easily ignored.


I share your views, Hairyloon.
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