Model Articles clarification

There has been clarification from the High Court regarding Model Articles and sole directors.

Following an earlier court case, the powers of a sole director for companies adopting Model Articles had been challenged.

The High Court has ruled, as was generally accepted, that as the Model Articles do not contain a 'minimum number of directors' clause, then a duly appointed sole director retains the power to act and make decisions. This has brought relief to many owner/manager companies following the earlier case.

This challenge did at least highlight the need to take care, particularly if 'minimum number of directors' is included or added to your Articles. The sole director would, in this situation have the power to appoint further directors.