Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Changing the Articles of Association

Re: Changing the Articles of Association

Postby atticus » Mon Jun 29, 2015 3:50 pm

That is not quite right. The objects of a company are unrestricted unless the shareholders choose in the Articles of Association to restrict them.

http://www.legislation.gov.uk/ukpga/2006/46/section/31

Why is this the case? I think the policy is to give companies freedom and flexibility to engage in such business activity as the directors wish. Do bear in mind that the vast majority of companies are privately owned, with no more than a handful of shareholders, who are usually the directors as well.

Public companies have many sections of the Companies Act 2006 to themselves.
User avatar
atticus
 
Posts: 19884
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Previous

Return to Company Law

Who is online

Users browsing this forum: No registered users and 1 guest