Certain changes to the company’s share capital and internal affairs can only be effected by amending the company’s Articles of Association. Companies amend their Articles of Association for a number of reasons, including to: Create a new class of shares (including Preference Shares). Vary rights attached to share classes. Entrench certain articles (including entrenchment of directors). Regulate the transfer of shares. Amend the division of power between directors and shareholders. Benefit from provisions introduced by the Companies Act 2006. A company’s Articles may also need to be amended as part of a larger transaction. For example: as part of a group reorganisation for tax purposes, a management buy-out (MBO) or a private equity transaction.