NATURE AND IMPORTANCE OF LIMITED

COMPANY’S ARTICLE OF ASSOCIATION

IN COMMON LAW AND STATUTE

  
Introduction

In the United Kingdom, there is a system of law called common law. This legal system is based
on the principles of equity and common law. Equity is the concept that laws should be applied in
a fair and reasonable manner. Common law is the body of law that applies to specific types of
cases. It was developed from the legal systems of England and Wales and Northern Ireland. A
limited company's articles of association are an important part of this legal system (Gillooly,
2013).

A limited company is an entity formed for the purpose of carrying on a particular trade or
business, and its articles of association must be in conformity with the law of that trade or
business. In order to carry out its activities, a limited company must have a reference to the
statute and common law that applies to it. This guide will discuss the nature and importance of
references to statute and common law in a limited company in the United Kingdom.

Reference to Statute and Common Law in Limited Company

A reference to statute and common law in a limited company is an entity’s document that
outlines the specific legal limitations and requirements that apply to the company. This document
may also have other specific provisions that are specific to the company’s trade or business. A
reference to statute and common law in a limited company can be found in articles of
association, bylaws, or in any other document that pertains to the limited company.

Benefits of Statute and Common Law in Articles of Association

The benefits of having a reference to statute and common law in a limited company's article of
association are numerous. For one, it can help you carry out your business more efficiently. By
referencing the statute and common law that applies to your business, you can avoid any
potential complications or problems that may arise. Additionally, it can help you to better
understand the legal requirements that apply to your business. By knowing what is required by
law and what is allowed under the terms of your articles of association, you can make sure that
your business runs smoothly and without any surprises.
Nature and Importance of Limited Company
A limited company is an entity formed for the purpose of carrying on a particular trade or
business, and its articles of association must be in conformity with the law of that trade or
business. In order to carry out its activities, a limited company must have a reference to the
statute and common law that applies to it. This guide will discuss the nature and importance of
references to statute and common law in a limited company in the United Kingdom.

Drawbacks of Statute and Common Law Absence

There are a few consequences of not having a reference to statute and common law in a limited
company. The first is that the company may not be able to carry out its activities lawfully.
Second, the company may not be able to sue or be sued in court, as it would lack the authority to
do so under the law of that trade or business. Finally, the company may not be able to take any
legal actions, such as suing for debt, challenging an order, or taking any other legal action.

Method to alter Articles of Association

A limited company can be amended with reference to the law of statute and common law that
applies to it. This is done by writing a new article of association which will be in conformity
with the law of the trade or business that the limited company wishes to operate in. The
amendment will also be in compliance with any changes made to the statute and common law
that applies to that trade or business.

Conclusion
A limited company is a company formed under the law that differs from a regular company in a
few key ways. For one, a limited company can be much less complex to operate, and it can
therefore be more easily set up and abolished. Additionally, a limited company can make it more
difficult for shareholders to take action against the company, which can provide greater stability
and security to its shareholders.

A limited company's article of association with reference to law of statute and common law is an
important factor to consider when setting up and running your business. Not having a reference
can have serious consequences for your business, so it's important to consider how to make sure
everything runs smoothly with reference to the law.

References

Gillooly, M., 2013. Legal coherence in the High Court: String theory for lawyers. Australian
Law Journal, 87, pp.33-48.

Handford, P., 2013. Cinderellas?: Rescue, trauma and the civil liability acts. Precedent (Sydney,
NSW), (115), pp.4-9.

Mason, A., 2016. The interaction of statute law and common law. Australian Law
Journal, 90(5), pp.324-339.

Pomerenke, A., 2017, August. Statute and common law. In Current Legal Issues Seminar Series.

Turner, P.G. ed., 2016. Equity and Administration. Cambridge University Press.