DRAFT MODEL ARTICLES
OF ASSOCIATION FOR PUBLIC COMPANIES

PART 1: DEFINITIONS
AND INTERPRETATION

1.       Defined terms

1.     The special meanings
given to certain words and phrases in the articles are set out in the index of
defined terms.

2.     Where a word or
phrase is defined in the index of defined terms, other grammatical forms of
that word or phrase used in the articles shall have a meaning which corresponds
to that definition.

PART 2: DIRECTORS

DIRECTORS’ POWERS AND
RESPONSIBILITIES

2.      
1.        

2.       Directors’ general
authority

Subject to the
Companies Acts and the articles, the directors:

a.       shall manage the
company’s business; and

b.       may exercise all the
powers of the company for any purpose connected with the company’s business.

c.      
1.        

d.      
2.        

e.      
1.        

f.      
2.        

3.       Members’ reserve
power

1.     The members may, by
special resolution, order the directors to act, or refrain from acting, in a
particular way

2.     No such special
resolution shall invalidate anything which the directors have already done.

DELEGATION OF
DIRECTORS’ POWERS AND RESPONSIBILITIES

1.    
1.        

2.    
2.        

3.    
3.        

4.     Directors may
delegate

1.     Subject to the
articles, the directors may delegate any of their powers and responsibilities:

a.     to such persons;

b.    by such means;

c.     to such an extent;

d.    in relation to such
matters or territories; and

e.     on such conditions or
subject to such restrictions, as they think fit.

DRAFT: JUNE 2006

2.     Unless the directors
specify otherwise, any such delegation authorises further delegation of the
directors’ powers and responsibilities by any person to whom they are
delegated, whether expressly or by virtue of this paragraph.

3.     The directors must
not delegate to any person who is not a director any decision connected with:

a.     how the directors (or
a committee of directors) take decisions;

b.    a director’s
appointment or the termination of a director’s appointment; or

c.     the payment or
declaration of a dividend.

d.    
1.        

e.    
2.        

f.    
3.        

4.     The directors may at
any time withdraw or revoke any delegation in whole or part, or alter its
terms.

5.    
1.        

6.    
2.        

7.    
3.        

8.    
4.        

5.     Committees of
directors

1.     If the directors:

a.     delegate powers or
responsibilities to two or more persons, at least one of whom is a director;
and

b.    indicate that they
should act together in respect of those powers or responsibilities, those
persons are a “committee” for the purposes of the articles.

c.    
1.        

1.    
 

2.     The provisions of the
articles about how the directors take decisions shall apply, as far as
possible, to the taking of decisions by committees, but the directors may make
rules of procedure which are binding on a committee.

DECISION-MAKING BY
DIRECTORS

3.    
1.        

4.    
2.        

5.    
3.        

6.    
4.        

7.    
5.        

6.     Directors to take
decisions collectively

1.     This article applies
to any matter in respect of which the directors have not delegated their powers
and responsibilities to a single director.

2.     Subject to the
articles, the directors must not act in relation to any such matter unless they
have taken a decision about it:

a.     at a directors’
meeting, or

b.    in the form of a
directors’ written resolution, in accordance with the articles.

c.    
1.        

d.    
2.        

e.    
3.        

f.    
4.        

g.    
5.        

h.    
6.        

7.     Calling directors’
meetings

1.     Any director may call
a directors’ meeting.

2.     The company secretary
shall call a directors’ meeting if a director so requests.

3.     A meeting is not
called unless reasonable notice of it has been given, indicating its proposed
date, time, place and subject matter.

4.     Notice must be given
to all the directors, except those:

DRAFT: JUNE 2006

a.     to whom it is not
possible to give reasonable notice; or

b.    who waive their
entitlement to notice, prospectively or retrospectively.

c.    
1.      

d.    
2.      

e.    
3.      

f.    
4.      

5.     Notice of a
directors’ meeting need not be given in writing.

6.     The reasonableness of
any notice period shall be determined by reference to:

a.     The urgency and
importance of the meeting’s subject matter; and

b.    Individual directors’
ability to receive notice of or participate in the meeting.

1.    
1.        

2.    

2.        

3.    
3.        

4.    
4.        

5.    

5.        

6.    
6.        

7.    
7.        

8.     Participation in
directors’ meetings

1.     Subject to the
articles, directors participate in a directors’ meeting, or part of a
director’s meeting, when:

a.     the meeting has been
called and takes place in accordance with the articles;

b.    they are engaged,
together, exclusively in the business of the meeting, or of that part of the
meeting;

c.     no other directors
are engaged on that business separately from them; and

d.    they can each
communicate to the others any information or opinions they have on any
particular item of that business.

e.    
1.        

2.     In determining whether
directors are participating in a directors’ meeting, it is irrelevant where any
director is or how they communicate with each other.

3.    
1.        

4.    
2.        

5.    
3.        

6.    
4.        

7.    
5.        

8.    
6.        

9.    
7.        

10.    
8.        

9.     Quorum for directors’
meetings

1.     At a directors’
meeting, unless a quorum is participating, no proposal shall be voted on,
except a proposal to call another meeting.

2.     The quorum for
directors’ meetings may be fixed from time to time by:

a.     a decision of the
directors, or

b.    an ordinary
resolution, but it shall never be less than two, and unless otherwise fixed it
shall be two.

c.    
1.      

d.    
2.      

3.     Subject to the
articles, a director who is interested in an actual or proposed transaction or
arrangement with the company shall not be counted as participating in any
directors’ meeting, or part of a directors’ meeting, relating to that
transaction or arrangement.

4.     A person who is an
alternate director but not a director shall be counted as participating for the
purposes of determining whether a quorum is participating, but only if that
person’s appoint tor is not participating. No alternate shall be counted as
more than one director for such purposes.

5. 
1.    

6. 
2.    

7. 
3.    

8. 
4.    

9. 
5.    

10. 
6.    

11. 
7.    

12. 
8.    

13. 
9.    

10.  Total number of
directors less than quorum

If the total number
of directors for the time being is less than the quorum for directors’
meetings, then:

a.     all the directors, or

DRAFT: JUNE 2006

b.    as many of them as
are not incapable of doing so by reason of illness or accident, may agree in
writing either to appoint sufficient new directors to make up a quorum or to
call a general meeting of the company to vote on a resolution that will appoint
further directors or alter the quorum.

c. 
1.    

d. 

2.    

e. 
3.    

f. 
4.    

g. 

5.    

h. 
6.    

i. 
7.    

j. 

8.    

k. 
9.    

l. 
10.    

11.  Chairing of
directors’ meetings

1.     The directors shall
appoint a director to chair their meetings.

2.     The person so
appointed for the time being shall be known as the chairman.

3.     The directors may
terminate the chairman’s appointment at any time.

4.     If the chairman is
not participating in a meeting within ten minutes of the time at which it is to
start, the participating directors shall appoint one of themselves to chair it.

5. 
1.    

6. 
2.    

7. 
3.    

8. 
4.    

9. 
5.    

10. 
6.    

11. 
7.    

12. 
8.    

13. 
9.    

14. 
10.    

15. 
11.    

12.  Voting at directors’ meetings:
general rules

1.     A decision is taken
at a directors’ meeting when a majority of the participating directors vote in
favour of a proposal.

2.     Subject to the
articles:

a.     each director
participating in such a decision shall have one vote; but

b.    if a director has an
interest in an actual or proposed transaction or arrangement with the company,
that director and that director’s alternate may not vote on any proposal
relating to it.

1. 
1.    

2. 
2.    

3. 
3.    

4. 
4.    

5. 
5.    

6. 
6.    

7. 
7.    

8. 
8.    

9. 
9.    

10. 
10.    

11. 
11.    

12. 
12.    

13.  Chairman’s casting
vote at directors’ meetings

If the numbers of
votes for and against a proposal are equal, the chairman or other director
chairing the meeting shall have a casting vote.

14.  Alternates voting at
directors’ meetings

Directors who are also
alternate directors each have an additional vote on behalf of each of their
appointers when their appointers are:

a.     not participating,
and

b.    would have been
entitled to vote if they were participating.

15.  Conflict of
interests: relaxation of restrictions

1.     In any of the
circumstances specified for the purposes of this article, a director who is
interested in an actual or proposed transaction or arrangement with the
company:

a.     shall be counted as
participating in a decision at a directors’ meeting, or part of a directors’
meeting, relating to it; and

b.    is entitled to vote
on a proposal relating to it.

1.    
 

2.     The circumstances
specified for the purposes of this article are when:

DRAFT: JUNE 2006

3.     the company by
ordinary resolution disapplies the provision of the articles which would
otherwise prevent a director from being counted as participating in, or voting
at, a directors’ meeting;

4.     the director’s
interest cannot reasonably be regarded as likely to give rise to a conflict of
interest; or

5.     the director’s
conflict of interest arises from a permitted cause.

1.      
 

2.      
 

3.     For the purposes of
this article, the following are permitted causes:

a.     a guarantee given, or
to be given, by or to a director in respect of an obligation incurred by or on
behalf of the company or any of its subsidiaries;

b.    subscription, or an
agreement to subscribe, for shares or other securities of the company or its
subsidiaries, or to underwrite, sub-underwrite, or guarantee subscription for
any such shares or securities; and

c.     a contract about
benefits for employees and directors or former employees and directors of the
company or its subsidiaries generally which does not provide special benefits
for directors or former directors.

4. 
1.    

5. 
2.    

6. 
3.    

7. 
4.    

8. 
5.    

9. 
6.    

10. 
7.    

11. 
8.    

12. 
9.    

13. 
10.    

14. 
11.    

15. 
12.    

16. 
13.    

17. 
14.    

18. 
15.    

16.  Directors’ discretion
to make further rules

1.     Subject to the
articles, the directors may make any rule which they think fit about how they
take decisions.

2.     The directors must
ensure that any such rule is communicated to all persons who are directors
while it remains in force.

19. 
1.    

20. 
2.    

21. 
3.    

22. 
4.    

23. 
5.    

24. 
6.    

25. 
7.    

26. 
8.    

27. 
9.    

28. 
10.    

29. 
11.    

30. 
12.    

31. 
13.    

32. 
14.    

33. 
15.    

34. 
16.    

17.  Directors’ written
resolutions

1.     A directors’ written
resolution is adopted when all the directors (or their alternates) sign a
document setting out a decision.

2.     A directors’ written
resolution is also adopted when:

a.     fewer than all of the
directors sign a document setting out a decision;

b.    it is impracticable
to have the document signed by those who have not signed it; and

c.     the document records
the names of the directors who have not signed it and the reasons why they have
not signed it.

d.    
1.      

e.    
2.      

3.     The practicability of
a director signing such a document shall be determined by reference to:

a.     the urgency and
importance of the decision to which it relates; and

b.    the director’s
ability to receive and sign the document and send it to the company by the time
when it is necessary or expedient for the directors to take that decision.

c.    
1.      

d.    
2.      

e.    
3.      

4.     References to a
document in this article include copies of that document.

5.     The directors are
responsible for ensuring that the company keeps a written record of all
directors’ written resolutions for at least ten years from the date of their
adoption.

DRAFT: JUNE 2006

APPOINTMENT OF
DIRECTORS

18.    Minimum and
maximum number of directors

Subject to the
Companies Acts, the company may by ordinary resolution decide that it is to
have:

a.     not more than, or

b.    not less than,

a specified number of
directors.

19. 
1.    

20. 
2.    

21. 

3.    

22. 
4.    

23. 
5.    

24. 

6.    

25. 
7.    

26. 
8.    

27. 

9.    

28. 
10.    

29. 
11.    

30. 

12.    

31. 
13.    

32. 
14.    

33. 

15.    

34. 
16.    

35. 
17.    

36. 

18.    

18. 
 

19.  Methods of appointing
directors

Any person who is
willing to act as a director, and is permitted by law to do so, may be
appointed to be a director:

a.     by ordinary
resolution; or

b.    by a decision of the
directors. 

c. 
1.    

d. 
2.    

e. 
3.    

f. 
4.    

g. 
5.    

h. 
6.    

i. 
7.    

j. 
8.    

k. 
9.    

l. 
10.    

m. 
11.    

n. 
12.    

o. 
13.    

p. 
14.    

q. 
15.    

r. 
16.    

s. 
17.    

t. 
18.    

u. 
19.    

1. 
 

2. 
 

3. 
 

4. 
 

5. 
 

6. 

 

7. 
 

8. 
 

9. 
 

10. 
 

11. 
 

12. 
 

13. 
 

14. 
 

15. 
 

16. 
 

17. 
 

18. 
 

19. 

 

20.  Appointments by
directors to be confirmed by members

1.     Directors appointed
by a decision of the directors must be confirmed in office by an ordinary
resolution at the next annual general meeting following their appointment by
the directors.

2.     Subject to the articles,
the appointment of directors whose appointment is not so confirmed terminates
at the end of that annual general meeting.

3. 
1.    

4. 
2.    

5. 
3.    

6. 
4.    

7. 
5.    

8. 
6.    

9. 
7.    

10. 
8.    

11. 
9.    

12. 
10.    

13. 
11.    

14. 
12.    

15. 
13.    

16. 
14.    

17. 
15.    

18. 
16.    

19. 
17.    

20. 
18.    

21. 
19.    

22. 
20.    

21.  Retirement of
directors by rotation

1.     At the first annual
general meeting all the directors shall retire from office.

2.     At every subsequent
annual general meeting half of the directors (rounded up to the nearest whole
number if there is an odd number of directors) shall retire from office and
offer themselves for reappointment by the members.

3.     The directors to
retire by rotation shall be those who have been longest in office since their
last appointment or reappointment by a general meeting, but as between persons
who were last appointed or reappointed on the same day those to retire shall be
decided by lot.

4.     For the purposes of
calculating which directors are required to retire by rotation, the following
shall be disregarded:

a.     any directors whose
appointment is required to be confirmed because they were appointed by the
directors; and

b.    any directors who
wish to retire and not be re-elected. 

c. 
1.    

d. 
2.    

e. 
3.    

f. 
4.    

g. 
5.    

h. 
6.    

i. 
7.    

j. 
8.    

k. 
9.    

l. 
10.    

m. 
11.    

n. 
12.    

o. 
13.    

p. 
14.    

q. 
15.    

r. 
16.    

s. 
17.    

t. 
18.    

u. 
19.    

v. 
20.    

w. 
21.    

22.  Appointment of
directors at general meetings

1.     A person is only
eligible to be appointed a director by a general meeting if that person:

a.     is a director
retiring by rotation at that meeting under the articles; or

DRAFT: JUNE 2006

                       
i.   
a.   

 

                       
ii.   
a.   
 

b.    has been nominated
for appointment as a director at that meeting by the directors or by a member
qualified to vote at that meeting.

c.    
1.      

2.     Members wishing to
nominate a person for appointment as a director must do so by giving notice in
writing to the company not less than 14 or more than 35 days before the date of
the meeting.

3.     The company must
notify all those who are entitled to receive notice of the meeting of who is
eligible to be appointed a director at any general meeting not less than seven
or more than 28 days before the date of that meeting.

4.     Nominations or
notices about the proposed appointment of a person as a director at a general
meeting need not contain that person’s address, but must otherwise include the
same information as an entry in the register of directors in respect of that
person would contain if that person were appointed a director.

5.     Nominations of a
person for appointment as a director at a general meeting must include a
statement signed by the person nominated indicating that person’s willingness
to be appointed a director.

6.     If, at the end of a
general meeting, the company would otherwise have fewer than two directors, or
such higher minimum number of directors as has been fixed in accordance with
the articles, the persons who were directors at the start of the meeting shall
be deemed to have been reappointed as directors, but they shall only act for
the purposes of:

a.     calling general
meetings; and

b.    performing such
duties as are essential to maintain the company as a going concern.

c. 

1.    

d. 
2.    

e. 
3.    

f. 

4.    

g. 
5.    

h. 
6.    

i. 

7.    

j. 
8.    

k. 
9.    

l. 

10.    

m. 
11.    

n. 
12.    

o. 

13.    

p. 
14.    

q. 
15.    

r. 

16.    

s. 
17.    

t. 
18.    

u. 

19.    

v. 
20.    

w. 
21.    

x. 

22.    

23.  Termination of
director’s appointment

1.     A person ceases to be
a director as soon as:

a.     that person ceases to
be a director by virtue of any provision of the Companies Acts, or is
prohibited by law from being a director;

b.    that person becomes
subject to a receiving order or compounds with that person’s creditors generally;

c.     in the opinion of all
the other directors, mental disorder makes that person incapable of discharging
the duties of a director;

d.    that person fails,
without the directors’ permission, to participate in directors’ meetings for
more than three months, and is not prevented from doing so by illness,
accident, or some other cause which the directors consider sufficient;

e.     a notification to the
company that that person is resigning or retiring from office as director takes
effect in accordance with its terms (but if a contract with the company
specifies a longer notice period, that person’s appointment shall not terminate
until expiry of the contractual notice period);

f.     the directors decide
to accept that person’s offer to resign from the office of director;

g.    an ordinary
resolution is passed removing that person from office;

DRAFT: JUNE 2006

2.    
a.      

3.    
b.      

4.    
c.      

5.    
d.      

6.    
e.      

7.    
f.      

8.    
g.      

h.     a contract under
which that person was appointed as a director of the company or undertakes
personally to perform services for the company terminates, and the directors
decide that that person should cease to be a director; or

9.     
a.       

10.     
b.       

11.     
c.       

12.     
d.       

13.     
e.       

14.     
f.       

15.     
g.       

16.     
h.       

i.      the directors decide
that that person should be removed from office, after having given that person
a reasonable opportunity to be heard at a directors’ meeting called on at least
fourteen days notice.

1.    
 

a.    
 

2.     The termination of a
person’s appointment as a director under the articles:

a.     terminates that
person’s membership of any committee and any other employment which that person
may have with the company;

b.    is without prejudice
to any claim which that person may have for breach of contract.

24 Directors’ terms
of service

1.     Directors may
undertake any services for the company that the directors decide (except
audit).

2.     Directors may
undertake such services either as part of, or in addition to, their work as
directors.

3.     Subject to the
Companies Acts:

a.     directors shall be
entitled to be remunerated for their services to the company as the directors
determine; and

b.    the directors may
decide any other terms of any contract relating to the services which a
director undertakes personally to perform for the company.

2.      
 

3.      
 

1.    
 

2.    
 

3.    
 

4.     Subject to the
articles, a director’s remuneration may:

a.     take any form;

b.    be contingent on or
otherwise calculated by reference to any aspect of the company’s performance,
however measured; and

c.     include any
arrangements in connection with the payment of a pension, allowance or
gratuity, or any death, sickness or disability benefits, to or in respect of
that director.

1.    
 

2.    
 

3.    
 

4.    
 

5.     Directors’
remuneration which is determined by the directors must not include payments to
or for the benefit of directors or former directors in connection with the
cessation or the transfer to any person of the whole or part of the undertaking
of the company or any of its subsidiaries.

6.     Unless the directors
decide otherwise, directors’ remuneration shall accrue from day to day.

7.     Unless the directors
decide otherwise, directors shall not be accountable to the company for any
remuneration which they receive as directors of the company’s subsidiaries.

8. 
1.    

9. 
2.    

10. 
3.    

11. 
4.    

12. 
5.    

13. 
6.    

14. 
7.    

15. 
8.    

16. 
9.    

17. 
10.    

18. 
11.    

19. 
12.    

20. 
13.    

21. 
14.    

22. 
15.    

23. 
16.    

24. 
17.    

25. 
18.    

26. 
19.    

27. 
20.    

28. 
21.    

29. 
22.    

30. 
23.    

31. 
24.    

25.  Directors’ expenses

Subject to the
Companies Acts, the company shall meet any reasonable expenses which the
directors properly incur in connection with anything they do for the company.

DRAFT: JUNE 2006

ALTERNATE DIRECTORS

26.  Appointment and
removal of alternates

1.     An alternate director
(or “alternate”) is a person appointed by a director (the alternate’s
“appointer”) to:

a.     exercise that
director’s powers; and

b.    carry out that
director’s responsibilities, at directors’ meetings as requested by that
director.

2.     Alternate directors
must be:

a.     directors, or

b.    persons approved by
the directors and willing to act as their appointers’ alternates.

c.    
2.        

3.     Any director may
appoint an alternate by notice in writing to the company specifying the duration
of the alternate’s appointment.

4. 
2.    

5. 
3.    

6. 
4.    

7. 
5.    

8. 
6.    

9. 
7.    

10. 
8.    

11. 
9.    

12. 
10.    

13. 
11.    

14. 
12.    

15. 
13.    

16. 
14.    

17. 
15.    

18. 
16.    

19. 
17.    

20. 
18.    

21. 
19.    

22. 
20.    

23. 
21.    

24. 
22.    

25. 
23.    

26. 
24.    

27. 
25.    

28. 
26.    

27.  Rights and
responsibilities of alternate directors

1.     Except as the
articles specify otherwise, alternate directors shall, in relation to
directors’ meetings:

a.     have the same rights,
duties and liabilities under the articles as their appointers;

b.    be subject to the
same restrictions as their appointers; and

c.     be deemed for all
purposes to be directors.

2.     Alternate directors
shall not be entitled to receive any remuneration from the company for their
services as alternate directors except such part of their appointers’
remuneration as their appointers may direct in writing.

3.     Alternate directors
are responsible for their own acts and omissions and shall not be deemed to be
agents of or for their appointers.

4. 
2.    

5. 
3.    

6. 
4.    

7. 
5.    

8. 
6.    

9. 
7.    

10. 
8.    

11. 
9.    

12. 
10.    

13. 
11.    

14. 
12.    

15. 
13.    

16. 
14.    

17. 
15.    

18. 
16.    

19. 
17.    

20. 
18.    

21. 
19.    

22. 
20.    

23. 
21.    

24. 
22.    

25. 
23.    

26. 
24.    

27. 
25.    

28. 
26.    

29. 
27.    

28.  Termination of
alternate directorship

Alternate directors’
appointments as alternates terminate:

a.     when their appointers
revoke their appointments by notice to the company in writing specifying when
their appointments are to terminate;

b.    on the occurrence in
relation to them of any event which, if it occurred in relation to their
appointers, would result in the termination of their appointers’ appointments
as directors;

c.     when their appointers
die; or

d.    when their appointers
appointments as directors terminate, except that alternate directors’
appointments as alternates do not terminate if their appointers retire by
rotation at a general meeting at which they are re-appointed as directors.

©2020 CV Legal Tech Services LLP

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

or    

Forgot your details?

Create Account