Companies Act 2006, section 21

Amendment of articles

Part 3 A company's constitution

(1)A company may amend its articles by special resolution.

(2)In the case of a company that is a charity, this is subject to—

(a)in England and Wales, [F29sections 197 and 198 of the Charities Act 2011F29] ;

(b)in Northern Ireland, [F30section 96 of the Charities Act (Northern Ireland) 2008F30] .

(3)In the case of a company that is registered in the Scottish Charity Register, this is subject to—

(a)section 112 of the Companies Act 1989 (c. 40), and

(b)section 16 of the Charities and Trustee Investment (Scotland) Act 2005 (asp 10).

Definitions used in section 21

company

“company” means a company formed and registered under this Act, that is—

(a)

a company so formed and registered after the commencement of this Part, or

(b)

a company that immediately before the commencement of this Part—

(i)

was formed and registered under the Companies Act 1985 (c. 6) or the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)), or

(ii)

was an existing company for the purposes of that Act or that Order,

(which is to be treated on commencement as if formed and registered under this Act).

Defined in s.1(1) · see it in the full Act

(4) In this section and that Schedule “company” includes any body corporate.

Defined in s.1159(4) · see it in the full Act
articles

(4) References in the Companies Acts to a company's “articles” are to its articles of association.

Defined in s.18(4) · see it in the full Act
the register

(2) The records relating to companies are referred to collectively in the Companies Acts as “the register”.

Defined in s.1080(2) · see it in the full Act

Cases considering section 21 (4)

Jeremy Sinclair Clarke & Anor v Yasmin Azim Lakha & Ors (Re Bramber Road Management Limited)

[2024] EWHC 51 (Ch) · 18 January 2024

Applies the requirement for alteration of articles by special resolution. The court held that the purported June 2021 members’ resolution could not validly alter the company’s constitution.

Payments Pro Ltd & Ors v Freelancer and Contractor Services Association Ltd

[2026] EWHC 2415 (Ch) · 24 September 2026Limits

The court held that section 21, which requires a special resolution to amend articles, did not resolve whether a contractual termination right had to be contained in or amended through the articles. (see paras [23]; [27])

Vladimir Yanpolsky v Robert Macmillan & Ors

[2024] EWHC 3166 (Ch) · 19 December 2024Limits

Section 21 was relied upon as the statutory source of the shareholders’ broad power to amend the articles. The court held that the power remained subject to the equitable restraints against oppression and injustice. (see para [46(d)])

What each judgment says about section 21 is in the case-law panel in the full Act.

Explanatory note

77.Subsection (1) provides that, as now, a company’s articles can in general be amended by special resolution. This restates section 9(1) of the 1985 Act.

78.Subsections (2) and ( 3) make it clear that this general principle is subject to certain rules in charities legislation about the ability of companies which are charities to change their constitutions and the effects which such changes have. There are separate but broadly similar rules for English and Welsh, Scottish and Northern Irish charities.

All the explanatory notes for the Act

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F29Words in s. 21(2)(a) substituted (14.3.2012) by Charities Act 2011 (c. 25), ss. 354, 355, Sch. 7 para. 113 (with s. 20(2), Sch. 8)
  2. F30Words in s. 21(2)(b) substituted (N.I.) (24.6.2013) by Charities Act (Northern Ireland) 2008 (c. 12) (N.I.), ss. 183, 185, {Sch. 8 para. 13(1)}; S.R. 2013/145, art. 2, Sch.

Modifications

  1. C50S. 21 excluded (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 85(2)(a), 164(3)(g)(ii)
  2. C51S. 21 modified (31.12.2023) by The Resolution of Central Counterparties (Modified Application of Corporate Law and Consequential Amendments) Regulations 2023 (S.I. 2023/1313), regs. 1(2), 4