What’s the Difference Between Articles of Association and Shareholders’ Agreements?

These two documents often get confused, but they serve different purposes:

Articles of Association

This is a public document filed at Companies House. It sets out the basic rules for how the company is run — things like voting rights, issuing shares, and board meetings.

Shareholders’ Agreement

This is a private contract between the shareholders. It deals with practical issues like what happens if someone wants to leave, how profits are shared, and how decisions are made.

Why You Might Need Both:

Articles deal with formal structure. Shareholders’ agreements deal with relationships and real-life situations.

> Tip: If you’re going into business with anyone else, get a shareholders’ agreement in place before there’s a problem.