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Hello,

I set up my CIC In in September of last year. In the opening of an account with the co-op bank they have pointed out an irregularity in my Articles of Association. My articles are written for two directors or more.

I now need to pass a special resolution with myself and amend the Articles.

Can anyone help with the wording of this amendment please?

Alex

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Hi Alex

We the board of xxx cic do hereby agree to adopt the new articles of association and forward to the CIC Regulator for approval........

Hi John, 

Thank you so much for your reply. I hadn't made myself altogether clear as I was working from my iphone earlier.

I need some advice on the actual wording of the Articles. At present they read like this:

  1. Directors to take decisions collectively[i]

Any decision of the Directors must be either a majority decision at a meeting or a decision taken in accordance with Article 18.  [In the event of the Company having only one Director, a majority decision is made when that single Director makes a decision.]

  1. Calling a Directors’ meeting
    • Two Directors may (and the Secretary, if any, must at the request of two Directors) call a Directors’ meeting.
    • A Directors’ meeting must be called by at least seven Clear Days’ notice unless either:
      • all the Directors agree; or
      • urgent circumstances require shorter notice.
    • Notice of Directors’ meetings must be given to each Director.
    • Every notice calling a Directors’ meeting must specify:
      • the place, day and time of the meeting; and
      • if it is anticipated that Directors participating in the meeting will not be in the same place, how it is proposed that they should communicate with each other during the meeting.
    • Notice of Directors’ meetings need not be in Writing.
    • Notice of Directors’ meetings may be sent by Electronic Means to an Address provided by the Director for the purpose.
  2. Participation in Directors’ meetings
    • Subject to the Articles, Directors participate in a Directors’ meeting, or part of a Directors’ meeting, when:
      • the meeting has been called and takes place in accordance with the Articles; and
      • they can each communicate to the others any information or opinions they have on any particular item of the business of the meeting.
    • In determining whether Directors are participating in a Directors’ meeting, it is irrelevant where any Director is or how they communicate with each other.[ii]
    • If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.
  3. Quorum for Directors’ meetings[iii]
    • At a Directors’ meeting, unless a quorum is participating, no proposal is to be voted on, except a proposal to call another meeting.
    • The quorum for Directors’ meetings may be fixed from time to time by a decision of the Directors, but it must never be less than two, and unless otherwise fixed it is [two].
    • If the total number of Directors for the time being is less than the quorum required, the Directors must not take any decision other than a decision:
      • to appoint further Directors; or
      • to call a general meeting so as to enable the members to appoint further Directors.

[i] Article 12 states that the Directors must make decisions by majority at a meeting in accordance with article 14; or unanimously if taken in accordance with article 18.

[ii] Article 14.2 is designed to facilitate the taking of decisions by the directors communicating via telephone or video conference calls.  Note the requirement to keep a written record of meetings and decisions (article 32).

[iii] The quorum may be fixed in absolute terms (e.g. “two Directors”) or as a proportion of the total number of Directors (e.g. “one third of the total number of Directors”). You may even wish to stipulate that particular named Directors, or Directors representing particular stakeholder interests, must be present to constitute a quorum.

I found these model articles posted on this group page from some months ago - I'm wondering if these will suffice as a replacement:

DECISION­ MAKING BY DIRECTORS 

 

 13. Scope of rules  

13.1 References in the Articles to decisions of Directors are to decisions of Directors  which are connected with their functions.  

13.2 Except where the Articles expressly provide otherwise, provisions of the Articles  about how the Directors take decisions do not apply:  (a) when the Company only has one Director; or  (b) to decisions delegated to a single Director.  

 

14. Directors to take decisions collectively Any decision of the Directors must be either a majority decision at a meeting or a  decision taken in accordance with Article 20.  

 

15. Calling a Directors’ meeting 

15.1 Two Directors may (and the Secretary, if any, must at the request of two  Directors) call a Directors’ meeting.  

15.2 A Directors’ meeting must be called by at least seven Clear Days’ notice unless  either:  (a) all the Directors agree; or  (b) urgent circumstances require shorter notice.  

15.3 Whenever possible, all papers to be discussed at Directors' meetings shall be  circulated at least 7 Clear Days prior to such meetings to enable Directors to  consider the papers and to receive assistance in reading and understanding the  content and implications of the papers if necessary.  

15.4 To assist Directors to participate fully in the business of Directors’ meetings, the  company shall use its best endeavours to offer training on the duties and  responsibilities of company directors, if such training is requested by any Director.  15.5 Notice of Directors’ meetings must be given to each Director.  

15.6 Every notice calling a Directors’ meeting must specify:  (a) the place, day and time of the meeting; and  (b) if it is anticipated that Directors participating in the meeting will not be in  the same place, how it is proposed that they should communicate with  each other during the meeting.  

15.7 Notice of Directors’ meetings need not be in Writing.  

15.8 Notice of Directors’ meetings may be sent by Electronic Means to an Address  provided by the Director for the purpose.  

 

16. Participation in Directors’ meetings  

16.1 Subject to the Articles, Directors participate in a Directors’ meeting, or part of a  Directors’ meeting, when:  (a) the meeting has been called and takes place in accordance with the  Articles; and Page 6 of 22 Example Community Interest Company  (b) they can each communicate to the others any information or opinions  they have on any particular item of the business of the meeting.  

16.2 In determining whether Directors are participating in a Directors’ meeting, it is  irrelevant where any Director is or how they communicate with each other.  

16.3 If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them  is.  

 

17. Quorum for Directors’ meetings  

17.1 At a Directors’ meeting, unless a quorum is participating, no proposal is to be  voted on, except a proposal to call another meeting.  

17.2 The quorum for Directors’ meetings may be fixed from time to time by a decision  of the Directors.  

17.3 If the total number of Directors for the time being is less than the quorum  required, the Directors must not take any decision other than a decision:  (a) to appoint further Directors; or  (b) to call a general meeting so as to enable the member(s) to appoint further  Directors.

Can you or anyone possibly clear this up.

Thnaks again for your help.

Best,

Alex

Hi John, 

Thank you so much for your reply. I hadn't made myself altogether clear as I was working from my iphone earlier.

I need some advice on the actual wording of the Articles. At present they read like this:

  1. Directors to take decisions collectively[i]

Any decision of the Directors must be either a majority decision at a meeting or a decision taken in accordance with Article 18.  [In the event of the Company having only one Director, a majority decision is made when that single Director makes a decision.]

  1. Calling a Directors’ meeting
    • Two Directors may (and the Secretary, if any, must at the request of two Directors) call a Directors’ meeting.
    • A Directors’ meeting must be called by at least seven Clear Days’ notice unless either:
      • all the Directors agree; or
      • urgent circumstances require shorter notice.
    • Notice of Directors’ meetings must be given to each Director.
    • Every notice calling a Directors’ meeting must specify:
      • the place, day and time of the meeting; and
      • if it is anticipated that Directors participating in the meeting will not be in the same place, how it is proposed that they should communicate with each other during the meeting.
    • Notice of Directors’ meetings need not be in Writing.
    • Notice of Directors’ meetings may be sent by Electronic Means to an Address provided by the Director for the purpose.
  2. Participation in Directors’ meetings
    • Subject to the Articles, Directors participate in a Directors’ meeting, or part of a Directors’ meeting, when:
      • the meeting has been called and takes place in accordance with the Articles; and
      • they can each communicate to the others any information or opinions they have on any particular item of the business of the meeting.
    • In determining whether Directors are participating in a Directors’ meeting, it is irrelevant where any Director is or how they communicate with each other.[ii]
    • If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.
  3. Quorum for Directors’ meetings[iii]
    • At a Directors’ meeting, unless a quorum is participating, no proposal is to be voted on, except a proposal to call another meeting.
    • The quorum for Directors’ meetings may be fixed from time to time by a decision of the Directors, but it must never be less than two, and unless otherwise fixed it is [two].
    • If the total number of Directors for the time being is less than the quorum required, the Directors must not take any decision other than a decision:
      • to appoint further Directors; or
      • to call a general meeting so as to enable the members to appoint further Directors.

[i] Article 12 states that the Directors must make decisions by majority at a meeting in accordance with article 14; or unanimously if taken in accordance with article 18.

[ii] Article 14.2 is designed to facilitate the taking of decisions by the directors communicating via telephone or video conference calls.  Note the requirement to keep a written record of meetings and decisions (article 32).

[iii] The quorum may be fixed in absolute terms (e.g. “two Directors”) or as a proportion of the total number of Directors (e.g. “one third of the total number of Directors”). You may even wish to stipulate that particular named Directors, or Directors representing particular stakeholder interests, must be present to constitute a quorum.

I found these model articles posted on this group page from some months ago - I'm wondering if these will suffice as a replacement:

DECISION­ MAKING BY DIRECTORS 

 

 13. Scope of rules  

13.1 References in the Articles to decisions of Directors are to decisions of Directors  which are connected with their functions.  

13.2 Except where the Articles expressly provide otherwise, provisions of the Articles  about how the Directors take decisions do not apply:  (a) when the Company only has one Director; or  (b) to decisions delegated to a single Director.  

 

14. Directors to take decisions collectively Any decision of the Directors must be either a majority decision at a meeting or a  decision taken in accordance with Article 20.  

 

15. Calling a Directors’ meeting 

15.1 Two Directors may (and the Secretary, if any, must at the request of two  Directors) call a Directors’ meeting.  

15.2 A Directors’ meeting must be called by at least seven Clear Days’ notice unless  either:  (a) all the Directors agree; or  (b) urgent circumstances require shorter notice.  

15.3 Whenever possible, all papers to be discussed at Directors' meetings shall be  circulated at least 7 Clear Days prior to such meetings to enable Directors to  consider the papers and to receive assistance in reading and understanding the  content and implications of the papers if necessary.  

15.4 To assist Directors to participate fully in the business of Directors’ meetings, the  company shall use its best endeavours to offer training on the duties and  responsibilities of company directors, if such training is requested by any Director.  15.5 Notice of Directors’ meetings must be given to each Director.  

15.6 Every notice calling a Directors’ meeting must specify:  (a) the place, day and time of the meeting; and  (b) if it is anticipated that Directors participating in the meeting will not be in  the same place, how it is proposed that they should communicate with  each other during the meeting.  

15.7 Notice of Directors’ meetings need not be in Writing.  

15.8 Notice of Directors’ meetings may be sent by Electronic Means to an Address  provided by the Director for the purpose.  

 

16. Participation in Directors’ meetings  

16.1 Subject to the Articles, Directors participate in a Directors’ meeting, or part of a  Directors’ meeting, when:  (a) the meeting has been called and takes place in accordance with the  Articles; and Page 6 of 22 Example Community Interest Company  (b) they can each communicate to the others any information or opinions  they have on any particular item of the business of the meeting.  

16.2 In determining whether Directors are participating in a Directors’ meeting, it is  irrelevant where any Director is or how they communicate with each other.  

16.3 If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them  is.  

 

17. Quorum for Directors’ meetings  

17.1 At a Directors’ meeting, unless a quorum is participating, no proposal is to be  voted on, except a proposal to call another meeting.  

17.2 The quorum for Directors’ meetings may be fixed from time to time by a decision  of the Directors.  

17.3 If the total number of Directors for the time being is less than the quorum  required, the Directors must not take any decision other than a decision:  (a) to appoint further Directors; or  (b) to call a general meeting so as to enable the member(s) to appoint further  Directors.

Can you or anyone possibly clear this up.

Thnaks again for your help.

Best,

Alex

Hi John, 

Thank you so much for your reply. I hadn't made myself altogether clear as I was working from my iphone earlier.

I need some advice on the actual wording of the Articles. At present they read like this:

  1. Directors to take decisions collectively[i]

Any decision of the Directors must be either a majority decision at a meeting or a decision taken in accordance with Article 18.  [In the event of the Company having only one Director, a majority decision is made when that single Director makes a decision.]

  1. Calling a Directors’ meeting
    • Two Directors may (and the Secretary, if any, must at the request of two Directors) call a Directors’ meeting.
    • A Directors’ meeting must be called by at least seven Clear Days’ notice unless either:
      • all the Directors agree; or
      • urgent circumstances require shorter notice.
    • Notice of Directors’ meetings must be given to each Director.
    • Every notice calling a Directors’ meeting must specify:
      • the place, day and time of the meeting; and
      • if it is anticipated that Directors participating in the meeting will not be in the same place, how it is proposed that they should communicate with each other during the meeting.
    • Notice of Directors’ meetings need not be in Writing.
    • Notice of Directors’ meetings may be sent by Electronic Means to an Address provided by the Director for the purpose.
  2. Participation in Directors’ meetings
    • Subject to the Articles, Directors participate in a Directors’ meeting, or part of a Directors’ meeting, when:
      • the meeting has been called and takes place in accordance with the Articles; and
      • they can each communicate to the others any information or opinions they have on any particular item of the business of the meeting.
    • In determining whether Directors are participating in a Directors’ meeting, it is irrelevant where any Director is or how they communicate with each other.[ii]
    • If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.
  3. Quorum for Directors’ meetings[iii]
    • At a Directors’ meeting, unless a quorum is participating, no proposal is to be voted on, except a proposal to call another meeting.
    • The quorum for Directors’ meetings may be fixed from time to time by a decision of the Directors, but it must never be less than two, and unless otherwise fixed it is [two].
    • If the total number of Directors for the time being is less than the quorum required, the Directors must not take any decision other than a decision:
      • to appoint further Directors; or
      • to call a general meeting so as to enable the members to appoint further Directors.

[i] Article 12 states that the Directors must make decisions by majority at a meeting in accordance with article 14; or unanimously if taken in accordance with article 18.

[ii] Article 14.2 is designed to facilitate the taking of decisions by the directors communicating via telephone or video conference calls.  Note the requirement to keep a written record of meetings and decisions (article 32).

[iii] The quorum may be fixed in absolute terms (e.g. “two Directors”) or as a proportion of the total number of Directors (e.g. “one third of the total number of Directors”). You may even wish to stipulate that particular named Directors, or Directors representing particular stakeholder interests, must be present to constitute a quorum.

I found these model articles posted on this group page from some months ago - I'm wondering if these will suffice as a replacement:

DECISION­ MAKING BY DIRECTORS 

 

 13. Scope of rules  

13.1 References in the Articles to decisions of Directors are to decisions of Directors  which are connected with their functions.  

13.2 Except where the Articles expressly provide otherwise, provisions of the Articles  about how the Directors take decisions do not apply:  (a) when the Company only has one Director; or  (b) to decisions delegated to a single Director.  

 

14. Directors to take decisions collectively Any decision of the Directors must be either a majority decision at a meeting or a  decision taken in accordance with Article 20.  

 

15. Calling a Directors’ meeting 

15.1 Two Directors may (and the Secretary, if any, must at the request of two  Directors) call a Directors’ meeting.  

15.2 A Directors’ meeting must be called by at least seven Clear Days’ notice unless  either:  (a) all the Directors agree; or  (b) urgent circumstances require shorter notice.  

15.3 Whenever possible, all papers to be discussed at Directors' meetings shall be  circulated at least 7 Clear Days prior to such meetings to enable Directors to  consider the papers and to receive assistance in reading and understanding the  content and implications of the papers if necessary.  

15.4 To assist Directors to participate fully in the business of Directors’ meetings, the  company shall use its best endeavours to offer training on the duties and  responsibilities of company directors, if such training is requested by any Director.  15.5 Notice of Directors’ meetings must be given to each Director.  

15.6 Every notice calling a Directors’ meeting must specify:  (a) the place, day and time of the meeting; and  (b) if it is anticipated that Directors participating in the meeting will not be in  the same place, how it is proposed that they should communicate with  each other during the meeting.  

15.7 Notice of Directors’ meetings need not be in Writing.  

15.8 Notice of Directors’ meetings may be sent by Electronic Means to an Address  provided by the Director for the purpose.  

 

16. Participation in Directors’ meetings  

16.1 Subject to the Articles, Directors participate in a Directors’ meeting, or part of a  Directors’ meeting, when:  (a) the meeting has been called and takes place in accordance with the  Articles; and Page 6 of 22 Example Community Interest Company  (b) they can each communicate to the others any information or opinions  they have on any particular item of the business of the meeting.  

16.2 In determining whether Directors are participating in a Directors’ meeting, it is  irrelevant where any Director is or how they communicate with each other.  

16.3 If all the Directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them  is.  

 

17. Quorum for Directors’ meetings  

17.1 At a Directors’ meeting, unless a quorum is participating, no proposal is to be  voted on, except a proposal to call another meeting.  

17.2 The quorum for Directors’ meetings may be fixed from time to time by a decision  of the Directors.  

17.3 If the total number of Directors for the time being is less than the quorum  required, the Directors must not take any decision other than a decision:  (a) to appoint further Directors; or  (b) to call a general meeting so as to enable the member(s) to appoint further  Directors.

Can you or anyone possibly clear this up.

Thnaks again for your help.

Best,

Alex

Click through to this, scroll down and you'll see ive attached a single director template courtesy of the excellent Mr Cox

http://cicassoc.ning.com/group/settingupacic/forum/topics/1-directo...

Thanks John that's great!

Hi there, would it be possible to get a copy of these please?

Lara

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