How to write a good articles of association

Good articles of association not only precisely defines the framework in which the company will operate in business, but also exhaustively regulates the internal relations taking place within it. It must be a comprehensive yet comprehensible document. Therefore, it is best not only to think carefully about the provisions that will be included in its content, but also to consult a specialist.

The mandatory elements that the contract of any commercial company must contain are governed by the provisions of the Commercial Companies Code. However, in order to apply them well or incorporate them into the content of the contract, one must not only understand them, but also be able to combine them. A good contract not only allows for seamless decision-making and communication within the company, it creates excellent internal conditions for the development of the company without, however, complicating the rules for capital transactions.

A ready-made text of any company's articles of association can be found on the Internet. However, the use of such a template may have adverse effects, as it may turn out that the agreement either does not regulate important issues or harms the shareholders instead of supporting them. It may turn out that the agreement either does not regulate important issues or that it harms the shareholders instead of supporting them, because it is not tailored to the needs and objectives of the company.

The company's articles of association must therefore be tailored to its needs. It should not regulate more than is necessary. Provisions that are too detailed may, in the future, make it impossible, or at least unnecessarily complicated, to carry out major changes, be they personnel changes in company bodies, capital changes or share sales.

Specialists from law firms - lawyers and solicitors - have been advising on and practising the drafting of company agreements for many years; they have the relevant knowledge and experience. They look at the various aspects, including those related to future changes in company capital, also from the tax side. This gives their advice a comprehensive dimension.

Enlisting the help of a specialist right from the contract drafting stage gives the entrepreneur the certainty of a good start - that counts in business.