Articles of Organisation and Operating Agreement serve as the constitutional document for businesses operating in England and Wales, particularly suitable for limited liability companies and partnerships. This document is essential when establishing a new business entity or restructuring an existing one, combining statutory requirements with practical operational guidelines. It addresses both the formal aspects required by Companies House and the internal arrangements between members, making it a crucial document for business formation and ongoing operations. The agreement needs to comply with the Companies Act 2006 and related legislation while providing flexibility for business growth and change.
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1. Parties: Identification of all members/parties to the agreement
2. Background: Context and purpose of the organization
3. Definitions: Key terms used throughout the agreement
4. Company Formation: Details of company structure and registration
5. Membership Rights: Rights, obligations and restrictions of members
6. Management Structure: Governance framework and decision-making processes
7. Capital Contributions: Initial and ongoing capital requirements
8. Profit Distribution: Rules for sharing profits and losses
9. Transfer of Interests: Procedures for transferring membership interests
1. Non-Compete Provisions: Restrictions on competitive activities - include when protecting business interests from member competition
2. Intellectual Property Rights: Ownership and protection of IP - include when IP is significant to the business
3. Advisory Board: Structure and role of advisory board - include when external advisors are needed
1. Schedule 1: Initial Members: List of founding members and their contributions
2. Schedule 2: Business Plan: Initial business plan and objectives
3. Schedule 3: Share Capital Structure: Detailed breakdown of share classes and rights
4. Appendix A: Voting Procedures: Detailed voting mechanisms and requirements
5. Appendix B: Valuation Methods: Agreed methods for valuing company interests
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