If a newly formed private limited company does not register its own bespoke Articles of Association, what happens?

Answer options:

The company's incorporation will be rejected by Companies House.

The Model Articles for private companies will automatically apply by default.

The directors must operate under common law rules until articles are drafted.

The company will be treated as a general partnership.

How to approach this question

Recall the purpose of the Model Articles provided by the government.

Full Answer

B.The Model Articles for private companies will automatically apply by default.✓ Correct

Under the Companies Act 2006, if a company does not register its own Articles of Association, or if the registered articles do not exclude or modify the relevant Model Articles, the Model Articles prescribed for that type of company will automatically apply by default.

Common mistakes

Believing that bespoke articles are a mandatory requirement for incorporation.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 2

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