The Company’s Articles determine the way in which it is run. Most companies are general commercial companies so are not limited to a specific role i.e. builder or IT services. They give certain rights and obligations to the Directors and Shareholders.
The Articles are typically determined when the Company is formed but may be changed over time. How the Articles are changed depends on the type of Company but any changes to their current format will require Shareholder approval.
For example, Articles will set out some duties for the Directors, possibly the minimum and maximum number of Directors, and how the Directors are appointed.
They will also determine what decisions and actions the Directors may undertake without any need for Shareholder approval.
The Articles deal with the rights attached to each Share Class and the rights of Shareholders.