Alteration If Articles

Question 1

Alteration

Answer 1

Here’s a simplified explanation of the process for altering a company’s articles of association:

Alteration of Articles

1. Special Resolution: A company may alter its articles by passing a special resolution.
2. Validity: Any alteration made shall be as valid as if originally contained in the articles.

Restrictions on Alteration

1. Substantive Rights or Liabilities: If an alteration affects the substantive rights or liabilities of members or a class of members, it requires:
   
   • A majority of at least three-fourths of the members or class of members affected.
   • Members must exercise their option through a vote, either personally or by proxy.

Filing with Registrar

1. Copy of Altered Articles: A copy of the altered articles must be filed with the registrar within 30 days of passing the resolution.
2. Registration: The registrar shall register the altered articles, which shall then be the company’s articles.