THE COMPANIES ACTS 1985 and 1989
COMPANY LIMITED BY SHARES
MEMORANDUM AND
ARTICLES OF ASSOCIATION
of
TIREE RENEWABLE ENERGY COMPANY LIMITED
242 West George Street, Glasgow G2 4QY
Telephone: 0141 248 4933 FAS: 8859
www.burness.co.uk
THE COMPANIES ACTS 1985 and 1989
COMPANY LIMITED BY SHARES
MEMORANDUM OF ASSOCIATION
of
TIREE RENEWABLE ENERGY COMPANY LIMITED
1
The company's name is " Tiree Renewable Energy Company Limited".
2
The company's registered office is to be situated in Scotland.
3
The company's objects are:
(a)
(i)
To develop, operate and maintain renewable energy project(s)
for the generation of electricity and/or heat, and to enter into all
such contracts and other arrangements with landowners,
funders,
consultants,
contractors,
purchasers/distributors/
consumers and others in connection with such project(s) as the
directors may consider appropriate;
(ii) To make donations (whether by way of gift aid or otherwise),
and/or provide other forms of support, to Tiree Community
Development Trust or any other charitable body (and that
irrespective of whether the provision of such support advances the
interests of the company);
(iii) To promote the interests of any company which is at the time a
subsidiary, the holding company, or a subsidiary of any holding
company, of the company, in any manner whatever and in
particular by paying or discharging the liabilities of such other
company or giving any undertaking to do so, by giving any
indemnity or guarantee in respect of such liabilities, by granting
any charge in security of any such indemnity or guarantee or in
security of the payment of money or performance of obligations
by such other company or by transferring any assets to such other
company, and in each case either with or without consideration
and whether or not any benefit flows to the company other than
the promotion of such interests, to the intent that the promotion of
the interests of any such other company shall be an object and not
a power of the company.
(b)
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To carry on any other activity which may appropriately be carried on in
connection with any of the objects of the company.
(c)
To purchase, take on lease, hire, take in exchange, and otherwise acquire
any property and rights which may be advantageous for the purposes of
the activities of the company.
(d)
To improve, manage, exploit, develop, turn to account and otherwise deal
with all or any part of the undertaking, property and rights of the
company.
(e)
To sell, let, hire, license, give in exchange and otherwise dispose of all or
any part of the undertaking, property and rights of the company.
(f)
To lend money and give credit to any other company, with or without
security, and to grant guarantees and contracts of indemnity on behalf of
any other company.
(g)
To borrow money and give security for the payment of money by, or the
performance of other obligations of, the company or any other company.
(h)
To draw, make, accept, endorse, discount, negotiate, execute and issue
cheques, promissory notes, bills of exchange, bills of lading, warrants,
debentures and other negotiable or transferable instruments.
(i)
To remunerate any individual in the employment of the company and to
establish, maintain and contribute to any pension or superannuation fund
for the benefit of, and to give or procure the giving of any donation,
pension, allowance or remuneration to, and to make any payment for or
towards the insurance of, any individual who is or was at any time in the
employment of the company and the spouse, widow/widower, relatives
and dependants of any such individual; to establish, subsidise and
subscribe to any institution, association, club or fund which may benefit
any such person.
(j)
To promote any private Act of Parliament or other authority to enable
the company to carry on its activities, alter its constitution or achieve
any other purpose which may promote the company's interests, and to
oppose or object to any application or proceedings which may prejudice
the company's interests.
(k)
To enter into any arrangement with any organisation, government or
authority which may be advantageous for the purposes of the activities of
the company and to obtain from any such organisation, government or
authority any charter, right, privilege or concession.
(l)
To enter into partnership or any other arrangement for sharing profit, cooperation or mutual assistance with any other body, whether incorporated
or unincorporated.
(m)
To give any shares, debentures or securities and accept any shares,
debentures or securities as consideration for any business, property or
rights acquired or disposed of.
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(n)
To effect insurance against risks of all kinds.
(o)
To invest moneys of the company not immediately required for the
purposes of its activities in such investments and securities (including
land) and that in such manner as may from time to time be considered
advantageous, and to dispose of and vary such investments and
securities.
(p)
To promote any company or other incorporated body formed for the
purpose of carrying on any activity which the company is authorised to
carry on.
(q)
To amalgamate with any body, incorporated or unincorporated, having
objects altogether or in part similar to those of the company.
(r)
To subscribe for, take, purchase and otherwise acquire and hold shares,
stocks, debentures and other interests in any company with which the
company is authorised to amalgamate and to acquire and take over the
whole or any part of the undertaking, assets and liabilities of any body,
incorporated or unincorporated, with which the company is authorised to
amalgamate.
(s)
To transfer all or any part of the undertaking, property and rights of the
company to any body, incorporated or unincorporated, with which the
company is authorised to amalgamate.
(t)
To accept subscriptions, grants, donations, gifts, legacies and
endowments of all kinds, either absolutely or conditionally or in trust for
any of the objects of the company.
(u)
To take such steps as may be deemed expedient for the purpose of
procuring contributions to the funds of the company, whether by way of
subscriptions, grants, loans, donations or otherwise.
(v)
To carry out any of these objects in any part of the world as principal,
agent, contractor, trustee or in any other capacity and through an agent,
contractor, sub-contractor, trustee or any person acting in any other
capacity and either alone or in conjunction with others.
(w)
To do anything which may be incidental or conducive to the attainment
of any of the objects of the company.
And it is declared that in this clause where the context so admits, "property"
means any property, heritable or moveable, real or personal, wherever
situated.
4
The liability of the members is limited.
5
The company's share capital is £100 divided into 100 shares of £1 each.
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WE, the subscribers to this memorandum of association, wish to be formed into a
company pursuant to this memorandum; and we agree to take the number of shares
shown opposite our name.
Name and address of subscriber
Number of shares taken by the subscribers
…………………………….
for and on behalf of
BURNESS (NOMINEES) LIMITED
50 Lothian Road
Edinburgh EH3 9WJ
100
Total shares taken
100
Dated 8 November 2005
Witness to the above signature:
Muriel Burt Cupples
242 West George Street
Glasgow G2 4QY
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THE COMPANIES ACTS 1985 and 1989
COMPANY LIMITED BY SHARES
ARTICLES of ASSOCIATION
of
TIREE RENEWABLE ENERGY COMPANY LIMITED
Constitution of company
1
The regulations in Table A scheduled to the Companies (Tables A to F)
Regulations 1985 as amended by the Companies (Tables A to F)
(Amendment) Regulations 1985 and the Companies Act 1985 (Electronic
Communications) Order 2000 (the said Table A as so amended being referred
to as "Table A") shall be deemed to be incorporated in these articles and shall
apply to the company with the exception of regulations 5, 24, 64 to 70, 72 to
101, 109, 111 to 116 and 118 and any other regulation to the extent that it is
inconsistent with these articles.
Definitions
2
In these articles
"the Act" means the Companies Act 1985; any reference in these articles to a
provision of the Act shall be deemed to include a reference to any statutory
modification or re-enactment of that provision for the time being in force
"electronic communication" has the same meaning as is assigned to that
expression in the Electronic Communications Act 2000
"the Holding Company" means Tiree Community Development Trust,
incorporated under the Companies Acts with and having its registered office
at Tiree Development Partnership, The Rural Centre, Crossapol, Isle of Tiree,
PA77 6UP
"the Secretary" means the secretary of the company or any other person
appointed to perform the duties of the secretary of the company, including a
joint, assistant or deputy secretary.
3
Subject to article 2, the definitions and principles of interpretation contained
in regulation 1 of Table A shall apply in these articles as they do in Table A.
Allotment of shares
4
The provisions of section 89(1) of the Act shall not apply to any allotment by
the company of equity securities.
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Transfer of shares
5
The directors shall be bound to register without delay any transfer of a share
by the Holding Company, providing the relevant stock transfer form is
lodged at the registered office of the company (or at such other place as the
directors may reasonably require) and is accompanied by the share certificate
covering the shares to which it relates.
Share certificates
6
Any share certificate issued by the company shall be signed by two directors
(or by one director and the secretary) but it shall not be necessary to apply
any seal to the certificate; regulation 6 of Table A shall be deemed to be
modified accordingly.
Written resolutions
7
A resolution in writing approved, by letter or via a system for facsimile or
electronic transmission, by a director shall be deemed, for the purposes of
regulation 93 of Table A, to be signed by such director.
Number of directors
8
Subject to article 9, the number of directors shall be not less than 3 and shall
be subject to a maximum of 7.
9
During the period of six months from the date of incorporation, the company
may have a sole director, and throughout that period the sole director shall be
entitled to exercise any of the powers expressed in these articles to be
exercisable by the directors generally.
Appointment/removal of directors by Holding Company
10
11
So long as the Holding Company holds 100% of the issued share capital of
the company, the Holding Company may, by notice in writing, signed by two
of its directors and given to the company (and subject to articles 8 and 12)
a)
appoint any person who is willing to act to be a director (either to fill
a vacancy or as an additional director); or
b)
remove any director.
A notice under article 10 shall not be valid unless it is accompanied by a
certificate, signed by the secretary of the Holding Company, to the effect that
the notice gives effect to a resolution passed by majority vote at a quorate
meeting of the board of directors of the Holding Company, duly convened
and held in accordance with the articles of association of the Holding
Company.
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12
Any appointment or removal of a director under article 10 shall have effect
from the date on which the relevant notice (together with the secretary's
certificate required under article 11) is given to the company.
Disqualification and removal of directors
13
A director shall vacate office if
a)
he/she ceases to be a director by virtue of any provision of the Act or
becomes prohibited by law from being a director
b)
he/she is sequestrated
c)
he/she becomes incapable for medical reasons of fulfilling the duties
of his/her office and such incapacity has continued, or is expected to
continue, for a period of more than six months
d)
in the case of a director appointed on the basis that he/she holds a
particular post as an employee of the Holding Company, he/she
ceases to hold that post
e)
he/she resigns office by notice to the company
f)
he/she is absent (without permission of the directors) for a period of
more than six months from meetings of directors held during that
period and the directors resolve to remove him/her from office; or
g)
he/she is removed from office by ordinary resolution (special notice
having been given) in pursuance of section 303 of the Act.
Appointments to offices
14
Directors shall be appointed to hold the office of Chair, Vice Chair and
Treasurer, and any other offices which the directors may consider
appropriate.
15
The appointments under article 14 shall be made at meetings of directors.
16
Each office shall be held (subject to article 18) until the conclusion of the
annual general meeting which follows appointment; a director whose period
of office expires under this article may be re-appointed to that office under
article 14 (providing he/she is willing to act).
17
If an elective resolution is in force dispensing with annual general meetings,
the reference in article 16 to the annual general meeting of the company shall
be deemed to be a reference to the annual general meeting of the Holding
Company.
18
The appointment of any director to an office under article 14 shall terminate
if he/she ceases to be a director or if he/she resigns from that office by notice
to the company.
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19
If the appointment of a director to any office under article 14 terminates, the
directors shall appoint another director to hold the office in his/her place.
Directors' interests
20
Subject to the provisions of the Act and provided that he/she has obtained the
prior approval of the Holding Company and has disclosed to the directors the
nature and extent of any personal interest which he/she has (unless
immaterial), a director (notwithstanding his/her office)
a)
may be a party to, or have some other personal interest in, any
transaction or arrangement with the company or any associated
company
b)
may be a party to, or have some other personal interest in, any
transaction or arrangement in which the company or any associated
company has an interest
c)
may be a director or secretary of, or employed by, or have some other
personal interest in, any associated company; and
d)
shall not, because of his/her office, be accountable to the company for
any benefit which he/she derives from any such office or employment
or from any such transaction or arrangement or from any interest in
any such company
and no such transaction or arrangement shall be liable to be treated as void on
the ground of any such interest or benefit.
21
22
For the purposes of the preceding article
a)
an interest of which a director has no knowledge and of which it is
unreasonable to expect him/her to have knowledge shall not be treated
as an interest of his/hers;
b)
the references to "associated company" shall be interpreted as
references to any subsidiary of the company or any other company in
which the company has a direct or indirect interest.
A letter by the secretary of the Holding Company recording the decision at
the relevant meeting of the board of directors of the Holding Company as to
approval or otherwise of the director entering into the relevant contract or
arrangement may be regarded by the directors as conclusive evidence of that
decision, in the absence of any information to the contrary available to the
directors.
Directors' remuneration and expenses
23
No director shall be entitled to any remuneration, whether in respect of
his/her office as director or as holder of any office under article 14.
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24
The directors may be paid all travelling, hotel and other expenses properly
incurred by them in connection with their attendance at meetings of directors
or committees of directors or general meetings or separate meetings of the
holders of any class of shares or otherwise in connection with the discharge
of their duties.
Powers of directors
25
Subject to the provisions of the Act, the memorandum of association and
these articles and to any directions given by special resolution, the business
of the company shall be managed by the directors who may exercise all the
powers of the company.
26
No alteration of the memorandum of association or these articles and no
direction given by special resolution shall invalidate any prior act of the
directors which would have been valid if that alteration had not been made or
that direction had not been given.
27
The powers conferred by article 25 shall not be limited by any special power
conferred on the directors by these articles.
28
Without prejudice to article 9, a meeting of directors at which a quorum is
present may exercise all powers exercisable by the directors.
Proceedings of directors
29
Subject to the provisions of these articles, the directors may regulate their
proceedings as they think fit.
30
Any director may call a meeting of the directors or request the secretary to
call a meeting of the directors.
31
Questions arising at any meeting of directors shall be decided by a majority
of votes; in the case of an equality of votes, the chairperson of a meeting of
directors shall have a second or casting vote.
32
Subject to article 9, the quorum for the transaction of the business of the
directors shall be 3.
33
If the quorum required under article 32 is not present within half an hour after
the time appointed for the meeting, or if during a meeting such a quorum
ceases to be present, the meeting shall stand adjourned to such time and place
as may be fixed by the chairperson of the meeting.
34
The continuing directors or a sole continuing director may act
notwithstanding vacancies, but if the number of remaining directors is less
than the number fixed as the quorum (but without prejudice to article 9) they
may act only for the purpose of filling vacancies or of calling a general
meeting.
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35
Unless he/she is unwilling to do so, the Chair of the board of directors shall
preside as chairperson at every meeting of directors at which he/she is
present; if the Chair of the board of directors is unwilling to act as
chairperson of a meeting of directors, the Vice Chair shall preside as
chairperson of the meeting.
36
If neither the Chair of the board of directors nor the Vice-Chair is present and
willing to act as chairperson of a meeting of directors within 15 minutes after
the time appointed for the meeting, the directors present shall appoint one of
their number to be chairperson of the meeting.
37
The directors shall be entitled to allow any person to attend and speak (but
not vote) at any meeting of the directors; a person invited to attend a meeting
of the directors under the preceding provisions of this article shall not be
entitled to exercise any of the powers of a director, and shall not be deemed
to constitute a director for the purposes of the Act or any provision of these
articles.
38
All acts done by a meeting of directors or by a meeting of a committee of
directors or by a person acting as a director shall, notwithstanding that it is
afterwards discovered that there was a defect in the appointment of any
director or that any of them was disqualified from holding office or had
vacated office or was not entitled to vote, be as valid as if every such person
had been duly appointed and was qualified and had continued to be a director
and had been entitled to vote.
39
A resolution in writing signed by all the directors entitled to receive notice of
a meeting of directors or of a committee of directors shall be as valid and
effectual as if it had been passed at a meeting of directors or (as the case may
be) a committee of directors duly convened and held; it may consist of
several documents in the same form, each signed by one or more directors.
40
A director shall not vote at a meeting of directors or at a meeting of a
committee of directors on any resolution concerning a matter in which he/she
has, directly or indirectly, a personal interest or duty (unless immaterial)
which conflicts or may conflict with the interests of the company.
41
For the purposes of the preceding article,
a)
an interest of a person who is taken to be connected with a director for
any purpose of the Act (excluding any statutory modification not in
force at the date of incorporation of the company), shall be treated as
a personal interest of the director
b)
a director shall not be deemed to have a personal interest in relation to
a particular matter by reason only of the fact that the Holding
Company has an interest in that matter and he/she is a member of the
board of directors or an employee of the Holding Company
c)
a director shall be deemed to have a personal interest in relation to a
particular matter if any other body in relation to which he/she is an
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employee, director, member of the management committee or officer
has a personal interest in that matter
42
A director shall not be counted in the quorum present at a meeting in relation
to a resolution on which he/she is not entitled to vote.
43
The Holding Company may, by issuing a notice to the company to that effect,
suspend or relax to any extent, either generally or in relation to any particular
matter, the provisions of articles 40 to 42.
44
If a question arises at a meeting of directors or at a meeting of a committee of
directors as to the right of a director to vote, the question may, before the
conclusion of the meeting, be referred to the chairperson of the meeting;
his/her ruling in relation to any director other than himself/herself shall be
final and conclusive.
Delegation to committees of directors and holders of offices
45
The directors may delegate any of their powers to any committee consisting
of two or more directors; they may also delegate to the Chair of the board of
directors or a director holding any other office such of their powers as they
consider appropriate.
46
Any delegation of powers under the preceding article may be made subject to
such conditions as the directors may impose and either collaterally with or to
the exclusion of their own powers and may be revoked or altered.
47
Subject to any condition imposed in pursuance of the preceding article, the
proceedings of a committee consisting of two or more directors shall be
governed by the articles regulating the proceedings of meetings of directors
so far as they are capable of applying.
Secretary
48
Subject to the provisions of the Act, the secretary shall be appointed by the
directors for such term, at such remuneration and upon such conditions as
they may think fit; and any secretary so appointed may be removed by them.
Minutes
49
The directors shall ensure that minutes are made (in books kept for the
purpose) of all proceedings at general meetings, meetings of the directors and
meetings of committees of directors; a minute of a meeting of directors or of
a committee of directors shall include the names of the directors present.
Notices
50
Any notice to be given in pursuance of these articles shall be given either in
writing or by way of an electronic communication.
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51
The company may give any notice to a member either personally or by
sending it by post in a pre-paid envelope addressed to the member at its
registered address or by leaving it at that address; in the case of a member
which has notified the company of an address to be used for the purpose of
electronic communications, the company may give any notice to that member
by way of an electronic communication.
52
A member may give any notice to the company either by sending it by post in
a pre-paid envelope addressed to the company at its registered office or by
leaving it, addressed to the company secretary, at the company's registered
office or (where the company has notified the member of an address to be
used for the purpose of electronic communications) by way of an electronic
communication.
53
Any notice, if sent by post, shall be deemed to have been given at the expiry
of 48 hours after posting; for the purpose of proving that any notice was
given, it shall be sufficient to prove that the envelope containing the notice
was properly addressed and posted.
54
Any notice contained in an electronic communication shall be deemed to
have been given at the expiry of 24 hours after it is sent; for the purpose of
proving that any electronic communication was sent, it shall be sufficient to
provide any of the evidence referred to in the relevant guidance issued from
time to time by the Chartered Institute of Secretaries and Administrators.
55
A member present or represented at any meeting of the company shall be
deemed to have received notice of the meeting and, where requisite, of the
purposes for which it was called.
Winding-up
56
If the company is wound up, the Holding Company, alone or jointly with any
other person, may become a purchaser of property belonging to the company.
Indemnity
57
Subject to the provisions of the Act but without prejudice to any indemnity to
which a director may otherwise be entitled, every director or other officer or
auditor of the company shall be indemnified out of the assets of the company
against any loss or liability which he/she may sustain or incur in connection
with the execution of the duties of his/her office including, without prejudice
to that generality, any liability incurred by him/her in defending any
proceedings, whether civil or criminal, in which judgement is given in his/her
favour or in which he/she is acquitted or in connection with any application
in which relief is granted to him/her by the court from liability for
negligence, default, breach of duty or breach of trust in relation to the affairs
of the company.
58
For the avoidance of doubt, the company shall be entitled to purchase and
maintain insurance against any loss or liability which any director or other
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officer of the company may sustain or incur in connection with the execution
of the duties of his /her office.
Name and address of subscriber
…………………………
for and on behalf of
BURNESS (NOMINEES) LIMITED
50 Lothian Road
Edinburgh EH3 9WJ
Dated 8 November 2005
Witness to the above signature:
Muriel Burt Cupples
242 West George Street
Glasgow G2 4QY
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