A shareholders' agreement and the
company's articles of association (Articles)
are important constitutional documents for a company, particularly where there is more than
one shareholder.
The documents both serve different purposes and have different
legal implications.
However, together, they seek to govern the affairs and
management of the company.
The Articles
The Articles are required by the Companies Act 2006
(the Act)and, typically, will set out the
rights attaching to the shares, as well as the management and
administrative structure of the company.
Unlike a shareholders' agreement, the Articles are filed
with Companies House and are available for public inspection
online.