Company Governance Settings when Model or Vestd Standard Articles of Association are adopted
For more information about Company Governance settings please see our guide which provides a little more detail around what these settings are, why we need them, and how to update them on the app.
If you are on your own bespoke Articles of Association, or have additional governance documentation in effect, the guidelines below will not apply to you.
The below depends on your company having no other governance documentation in effect, such as a Shareholder or Investors' Agreement, that might overrule your Articles of Association.
Model Articles of Association
Most companies incorporating in England and Wales do so with the Model Articles of Association for limited companies. This will normally be stated on the incorporation documents filed at Companies House when the company was first created, and if no other Articles have been filed since then, you may still be on these Model Articles.
If you have no other governance documentation in effect, the model articles and the Companies Act 2006 require a Directors' and/or a Shareholders' resolution for certain actions on the Company Governance settings guide.
Directors' resolutions generally require a 50% majority to pass, while Shareholders' resolution will either require the holders of over 50% of the company's issued shares (for an ordinary resolution) or 75% of the company's issued shares (for a special resolution) to pass.
Under the Model Articles, there are no "must sign" shareholders.
Vestd Standard Articles
All of our customers are welcome to adopt our standard Articles of Association. These are immutable on the app, but you are also welcome to use them as a basis for your own bespoke articles.
Once you have adopted our articles, you will still be asked to confirm your Governance Settings. This is to ensure that you do not have any other governance documents that we don't know about.
If you have no other governance documentation in effect, your Governance Settings should match the "CA 2006 Defaults" listed on the right hand side
Remember to update these settings if anything changes.