The memorandum and articles of association set out the rules of the company: for example, what lines of business it can pursue, what powers the directors have, and how shares can be transferred.
You may want the memorandum and articles to be as flexible as possible in many areas: for example, allowing the company to pursue any line of business, to borrow money if the directors choose, and so on.
However, you may also want some restrictions. For example, the founders of smaller, private companies often include restrictions on the transfer of shares, aiming to retain control of the business.
You should discuss your requirements with your advisor. You should also discuss whether any special terms are best dealt with in the company's memorandum and articles or through a shareholders' agreement (see 11).
