Decisions will generally be made by the directors and/or shareholders of the UK company.
For private limited companies, the directors will generally have the power to manage the business of a company and responsibility for making decisions and exercising powers in relation to that company. The directors must act within the powers conferred upon them in the company’s articles of association and in accordance with the UK Companies Act 2006, amongst other things. Directors may also delegate certain powers to committees or individual directors as they see fit.
Whilst directors handle the management of a company, major decisions and transactions that affect the structure of a company (e.g., amending the articles of association, etc.) will typically require the approval of the shareholders. Shareholder decision making is prescribed in the UK Companies Act 2006 and the articles of association of a company. Shareholders will exercise their power through voting on written resolutions or at general meetings of a company. Additional rights may be set out in a shareholders' agreement, which is usually introduced as part of the company's first financing round backed by an institutional investor.
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