What document controls a Designated Activity Company's relationship with its shareholders?

The Articles of Association is the key document that governs a Designated Activity Company's (DAC) relationship with its shareholders. This document outlines the rules and regulations related to the governance of the company, including the rights and responsibilities of shareholders, the procedures for conducting company meetings, and how decisions are made within the company.

The Articles of Association play a crucial role in defining various aspects such as share transfers, dividend distribution, and the appointment and removal of directors. It serves as a binding agreement among the shareholders and is critical for ensuring that the company operates in an orderly manner.

In contrast, the Memorandum of Association primarily outlines the fundamental conditions under which the company is registered and speaks to the company's purpose and structure. The Deed of Adherence generally pertains to agreements related to an individual's adherence to the terms of existing contracts or governance documents but does not control the overall relationship with shareholders. A Memorandum of Understanding is usually non-binding and is often used to outline general intentions or understandings between parties, making it less relevant in the formal governance aspect of a DAC.