LATA Membership Regulations and Articles of Association

THE COMPANIES ACT 2006
PRIVATE COMPANY LIMITED BY GUARANTEE
ARTICLES OF ASSOCIATION
of
LATIN AMERICAN TRAVEL ASSOCIATION LIMITED
(the Company)

PART 1 – INTERPRETATION AND LIMITATION OF LIABILITY

1. Defined terms
In the articles, unless the context requires otherwise:

articles: means the Company’s articles of association.

bankruptcy: includes individual insolvency proceedings in a jurisdiction other than England and Wales or Northern Ireland which have an effect similar to that of bankruptcy.

chairman: has the meaning given in article 13.

chairman of the meeting: has the meaning given in article 26.

Companies Acts: means the Companies Acts (as defined in section 2 of the Companies Act 2006), in so far as they apply to the Company.

director: means a director of the Company, and includes any person occupying the position of director, by whatever name called.
document: includes, unless otherwise specified, any document sent or supplied in electronic form.

electronic form: has the meaning given in section 1168 of the Companies Act 2006.

member: has the meaning given in section 112 of the Companies Act 2006.

members’ written resolution: means a written resolution of the members of the Company passed in accordance with Chapter 2 of Part 13 of the Companies Act 2006.

ordinary resolution: has the meaning given in section 282 of the Companies Act 2006.

participate: in relation to a directors’ meeting, has the meaning given in article 11.

proxy notice: has the meaning given in article 36.
special resolution: has the meaning given in section 283 of the Companies Act 2006.

subsidiary: has the meaning given in section 1159 of the Companies Act 2006.

writing: means the representation or reproduction of words, symbols or other information in a visible form by any method or combination of methods, whether sent or supplied in electronic form or otherwise.

Unless the context otherwise requires, other words or expressions contained in these articles bear the same meaning as in the Companies Act 2006 as in force on the date when these articles become binding on the Company.

The regulations contained in the Model Articles for Private Companies Limited by Guarantee (Schedule 2 to the Companies (Model Articles) Regulations 2008 (SI 2008/3229)) shall not apply to the Company.

2. Liability of members
The liability of each member is limited to £1, being the amount that each member undertakes to contribute to the assets of the Company in the event of its being wound up while he, she or it is a member or within one year after he, she or it ceases to be a member, for:
2.1 payment of the Company’s debts and liabilities contracted before he, she or it ceases to be a member;
2.2 payment of the costs, charges and expenses of winding up; and
2.3 adjustment of the rights of the contributories among themselves.

3. Objects
The objects of the Company are:
3.1 To stimulate the growth of travel to Latin America.
3.2 To bring together members to develop a closer working relationship and create a better understanding of travel matters which relate to Latin America.
3.3 To share information between members.
3.4 To organise promotional events on behalf of members.
3.5 To seek to ensure the competitiveness of Latin America in all sectors of tourism.
3.6 To improve press coverage and media profile of Latin America.
3.7 To improve public awareness of Latin America as a tourism destination.
3.8 To inform and to advise Latin American travel suppliers on requirements of the UK and Ireland marketplace.
3.9 To encourage increased standards across all aspects of travel in Latin America.

4. Application of income and property
4.1 The income and property of the Company shall be applied solely towards the promotion of its objects.
4.2 No portion of the income or property of the Company shall be paid or transferred, directly or indirectly, by way of dividend, bonus or otherwise by way of profit, to the members of the Company.
4.3 Nothing in this article shall prevent any payment in good faith by the Company of:
4.3.1 reasonable and proper remuneration to any member, officer or servant of the Company for any services actually rendered to the Company;
4.3.2 interest on money lent by any member to the Company at a reasonable and proper rate; or
4.3.3 reasonable and proper rent for premises demised or let by any member to the Company.

5. Application of assets on winding up
On the winding up or dissolution of the Company, after the satisfaction of all its debts and liabilities, any property whatsoever remaining shall not be paid to or distributed among the members of the Company, but shall be given or transferred to one or more bodies having similar objects to those of the Company, such body or bodies to be determined by the members by ordinary resolution at or before the time of dissolution.

PART 2 – DIRECTORS

DIRECTORS’ POWERS AND RESPONSIBILITIES

6. Directors’ general authority
Subject to the articles, the directors are responsible for the management of the Company’s business, for which purpose they may exercise all the powers of the Company.

7. Directors may delegate
7.1 Subject to the articles, the directors may delegate any of the powers which are conferred on them under the articles:
7.1.1 to such person or committee;
7.1.2 by such means (including by power of attorney);
7.1.3 to such an extent;
7.1.4 in relation to such matters or territories; and
7.1.5 on such terms and conditions;
as they think fit.
7.2 If the directors so specify, any such delegation may authorise further delegation of the directors’ powers by any person to whom they are delegated.
7.3 The directors may revoke any delegation in whole or part, or alter its terms and conditions.

8. Committees
8.1 Committees to which the directors delegate any of their powers must follow procedures which are based as far as they are applicable on those provisions of the articles which govern the taking of decisions by directors.
8.2 The directors may make rules of procedure for all or any committees, which prevail over rules derived from the articles if they are not consistent with them.

DECISION-MAKING BY DIRECTORS

9. Directors to take decisions collectively – MAJORITY DECISIONS
9.1 The general rule about decision-making by directors is that any decision of the directors must be either a majority decision at a meeting or a decision taken in accordance with article 10.
9.2 If:
9.2.1 the Company only has one director, and
9.2.2 no provision of the articles requires it to have more than one director,
the general rule does not apply, and the director may take decisions without regard to any of the provisions of the articles relating to directors’ decision-making.

10. WRITTEN RESOLUTIONS AND Unanimous decisions

10.1 A decision of the directors may be taken in the form of a directors’ written resolution without a directors’ meeting.
10.2 A proposed directors’ written resolution must be sent to all eligible directors. An eligible director signifies agreement to the resolution by signing a copy of it or by otherwise indicating agreement in writing (including by electronic means).
10.3 A directors’ written resolution is passed when a majority of the eligible directors have signified their agreement to it.
10.4 References in this article to eligible directors are to directors who would have been entitled to vote on the matter had it been proposed as a resolution at a directors’ meeting, and a directors’ written resolution may not be passed unless the number of eligible directors who signify agreement would have formed a quorum at such a meeting.

11. Calling a directors’ meeting
11.1 Any director may call a directors’ meeting by giving notice of the meeting to the directors or by authorising the company secretary (if any) to give such notice.
11.2 Notice of any directors’ meeting must indicate:
11.2.1 its proposed date and time;
11.2.2 where it is to take place; and
11.2.3 if it is anticipated that directors participating in the meeting will not be in the same place, how it is proposed that they should communicate with each other during the meeting.
11.3 Notice of a directors’ meeting must be given to each director, but need not be in writing.
11.4 Notice of a directors’ meeting need not be given to directors who waive their entitlement to notice of that meeting, by giving notice to that effect to the Company not more than 7 days after the date on which the meeting is held. Where such notice is given after the meeting has been held, that does not affect the validity of the meeting, or of any business conducted at it.

12. Participation in directors’ meetings
12.1 Subject to the articles, directors participate in a directors’ meeting, or part of a directors’ meeting, when:
12.1.1 the meeting has been called and takes place in accordance with the articles, and
12.1.2 they can each communicate to the others any information or opinions they have on any particular item of the business of the meeting.
12.2 In determining whether directors are participating in a directors’ meeting, it is irrelevant where any director is or how they communicate with each other.
12.3 If all the directors participating in a meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.

13. Chairing of directors’ meetings
13.1 The directors may appoint a director to chair their meetings.
13.2 The person so appointed for the time being is known as the chairman.
13.3 The directors may terminate the chairman’s appointment at any time.
13.4 If the chairman is not participating in a directors’ meeting within ten minutes of the time at which it was to start, the participating directors must appoint one of themselves to chair it.

14. Casting vote
14.1 If the numbers of votes for and against a proposal are equal, the chairman or other director chairing the meeting has a casting vote.
14.2 But this does not apply if, in accordance with the articles, the chairman or other director is not to be counted as participating in the decision-making process for quorum or voting purposes.

15. Quorum for directors’ meetings
15.1 At a directors’ meeting, unless a quorum is participating, no proposal is to be voted on, except a proposal to call another meeting.
15.2 The quorum necessary for the transaction of business at directors’ meetings shall be 50% of the total number of directors from time to time.

16. Directors’ conflicts of interest
16.1 If a proposed decision of the directors is concerned with an actual or proposed transaction or arrangement with the Company in which a director is interested, that director is not to be counted as participating in the decision-making process for quorum or voting purposes.
16.2 But if article 16.3 applies, a director who is interested in an actual or proposed transaction or arrangement with the Company is to be counted as participating in the decision-making process for quorum and voting purposes.
16.3 This article applies when:
16.3.1 the Company by ordinary resolution disapplies the provision of the articles which would otherwise prevent a director from being counted as participating in the decision-making process;
16.3.2 the director’s interest cannot reasonably be regarded as likely to give rise to a conflict of interest; or
16.3.3 the director’s conflict of interest arises from a permitted cause.
16.4 For the purposes of this article, the following are permitted causes:
16.4.1 a guarantee given, or to be given, by or to a director in respect of an obligation incurred by or on behalf of the Company or any of its subsidiaries;
16.4.2 subscription, or an agreement to subscribe, for securities of the Company or any of its subsidiaries, or to underwrite, sub-underwrite, or guarantee subscription for any such securities; and
16.4.3 arrangements pursuant to which benefits are made available to employees and directors or former employees and directors of the Company or any of its subsidiaries which do not provide special benefits for directors or former directors.
16.5 For the purposes of this article, references to proposed decisions and decision-making processes include any directors’ meeting or part of a directors’ meeting.
16.6 Subject to article 16.7, if a question arises at a meeting of directors or of a committee of directors as to the right of a director to participate in the meeting (or part of the meeting) for voting or quorum purposes, the question may, before the conclusion of the meeting, be referred to the chairman whose ruling in relation to any director other than the chairman is to be final and conclusive.
16.7 If any question as to the right to participate in the meeting (or part of the meeting) should arise in respect of the chairman, the question is to be decided by a decision of the directors at that meeting, for which purpose the chairman is not to be counted as participating in the meeting (or that part of the meeting) for voting or quorum purposes.

17. Records of decisions to be kept
The directors must ensure that the Company keeps a record, in writing, for at least 10 years from the date of the decision recorded, of every unanimous or majority decision taken by the directors.

18. Directors’ discretion to make further rules
Subject to the articles, the directors may make any rule which they think fit about how they take decisions, and about how such rules are to be recorded or communicated to directors.

APPOINTMENT OF DIRECTORS

19. Methods of appointing directors
19.1 Any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director for a period of office of two years by ordinary resolution subject to:
19.1.1 Being an employee of a fully paid-up full or associate member; and
19.1.2 There being no other employee of that member appointed as a director.
19.2 Any person who has been appointed as a director must continue to fulfil the eligibility requirements.
19.3 In the event that a committee member no longer fulfils the eligibility requirements then they will be considered to have resigned as a director with immediate effect.
19.4 The annual election of candidates to vacant positions takes place via an online electronic voting system, as communicated by the Company to all members, each year. The results of the election shall be announced at a general meeting of the Company.
19.5 In the event that the number of candidates is less than or equal to the number of vacancies, those candidates shall be appointed unopposed as directors without necessitating a vote of the members.
19.6 In the event that there is a tie in the number of votes cast, the chairman of the general meeting shall have a casting vote.
19.7 Should any director position become vacant other than at the annual election, or there are insufficient candidates to fill all available vacancies at the annual election, then the existing directors may fill any vacancy by co-option. Co-opted directors shall serve until the following annual election, at which point their position will be advertised as vacant in the usual way.
19.8 In any case where, as a result of death, the Company has no members and no directors, the personal representatives of the last member to have died have the right, by notice in writing, to appoint a person to be a director.
19.9 For the purposes of article 19.4, where two or more members die in circumstances rendering it uncertain who was the last to die, a younger member is deemed to have survived an older member.

20. Termination of director’s appointment
A person ceases to be a director as soon as:
20.1 their two-year term of office expires or for a co-opted director the period up to the next annual election;
20.2 that person ceases to be a director by virtue of any provision of the Companies Act 2006 or is prohibited from being a director by law;
20.3 a bankruptcy order is made against that person;
20.4 a composition is made with that person’s creditors generally in satisfaction of that person’s debts;
20.5 a registered medical practitioner who is treating that person gives a written opinion to the Company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more than three months;
20.6 notification is received by the Company from the director that the director is resigning from office, and such resignation has taken effect in accordance with its terms; or
20.7 the director is removed from office by ordinary resolution of the members in accordance with section 168 of the Companies Act 2006.

21. Directors’ remuneration
21.1 Directors may undertake any services for the Company that the directors decide.
21.2 Directors offer their services to the Company voluntarily and without expectation of remuneration, recompense or benefit of any kind including, but not limited to:
21.2.1 Direct financial remuneration;
21.2.2 Treatment by the Company that could be considered beneficial when compared with that which any other member may reasonably expect; or
21.2.3 Access to events on any basis other than that which is applicable to all members.
21.3 Being appointed as a director of the Company does not confer any vested rights or any ongoing recognition by the Company on termination of appointment as a director.

22. Directors’ expenses
The Company may pay any reasonable expenses which the directors properly incur in connection with their attendance at:
22.1 meetings of directors or committees of directors;
22.2 general meetings; or
22.3 separate meetings of the holders of any class of debentures of the Company,
or otherwise in connection with the exercise of their powers and the discharge of their responsibilities in relation to the Company.

PART 3 – MEMBERS

BECOMING AND CEASING TO BE A MEMBER

23. Applications for membership
23.1 Membership of the Company is open to businesses and organisations that are engaged in the Latin American tourism industry.
23.2 The process for applying and being admitted as a member shall be subject to the Company’s membership regulations, as amended from time to time.

24. Suspension and  Termination of membership
24.1 The process for suspended or terminating membership shall be subject to the Company’s membership regulations, as amended from time to time.
24.2 Membership is not transferable.
24.3 A person’s membership terminates when that person dies or ceases to exist.

ORGANISATION OF GENERAL MEETINGS

25. Attendance and speaking at general meetings
25.1 A person is able to exercise the right to speak at a general meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, any information or opinions which that person has on the business of the meeting.
25.2 A person is able to exercise the right to vote at a general meeting when:
25.2.1 that person is able to vote, during the meeting, on resolutions put to the vote at the meeting; and
25.2.2 that person’s vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting.
25.3 The directors may make whatever arrangements they consider appropriate to enable those attending a general meeting to exercise their rights to speak or vote at it.
25.4 In determining attendance at a general meeting, it is immaterial whether any two or more members attending it are in the same place as each other.
25.5 Two or more persons who are not in the same place as each other attend a general meeting if their circumstances are such that if they have (or were to have) rights to speak and vote at that meeting, they are (or would be) able to exercise them.

26. Quorum for general meetings
26.1 Subject to article 26.2, no business other than the appointment of the chairman of the meeting is to be transacted at a general meeting if the persons attending it do not constitute a quorum, and the quorum for general meetings shall be 5% of the total membership of the Company for the time being entitled to vote.
26.2 The quorum requirement in article 26.1 may be reduced for a particular general meeting if all the members of the Company for the time being entitled to vote agree in writing that the meeting may proceed with fewer members present, in which case the quorum shall be such number of members as is so agreed.

27. Chairing general meetings
27.1 If the directors have appointed a chairman, the chairman shall chair general meetings if present and willing to do so.
27.2 If the directors have not appointed a chairman, or if the chairman is unwilling to chair the meeting or is not present within ten minutes of the time at which a meeting was due to start:
27.2.1 the directors present, or
27.2.2 (if no directors are present), the meeting,
must appoint a director or member to chair the meeting, and the appointment of the chairman of the meeting must be the first business of the meeting.
27.3 The person chairing a meeting in accordance with this article is referred to as “the chairman of the meeting”.

28. Adjournment
28.1 If the persons attending a general meeting within half an hour of the time at which the meeting was due to start do not constitute a quorum, or if during a meeting a quorum ceases to be present, the chairman of the meeting must adjourn it.
28.2 The chairman of the meeting may adjourn a general meeting at which a quorum is present if:
28.2.1 the meeting consents to an adjournment; or
28.2.2 it appears to the chairman of the meeting that an adjournment is necessary to protect the safety of any person attending the meeting or ensure that the business of the meeting is conducted in an orderly manner.
28.3 The chairman of the meeting must adjourn a general meeting if directed to do so by the meeting.
28.4 When adjourning a general meeting, the chairman of the meeting must:
28.4.1 either specify the time and place to which it is adjourned or state that it is to continue at a time and place to be fixed by the directors; and
28.4.2 have regard to any directions as to the time and place of any adjournment which have been given by the meeting.
28.5 If the continuation of an adjourned meeting is to take place more than 14 days after it was adjourned, the Company must give at least 7 clear days’ notice of it (that is, excluding the day of the adjourned meeting and the day on which the notice is given):
28.5.1 to the same persons to whom notice of the Company’s general meetings is required to be given; and
28.5.2 containing the same information which such notice is required to contain.
28.6 No business may be transacted at an adjourned general meeting which could not properly have been transacted at the meeting if the adjournment had not taken place.

VOTING AT GENERAL MEETINGS

29. Voting: general
29.1 Each member of the Company has one vote.
29.2 Every resolution put to the vote at a general meeting shall be decided on a show of hands unless a poll is duly demanded in accordance with these articles.

30. Errors and disputes
30.1 No objection may be raised to the qualification of any person voting at a general meeting except at the meeting or adjourned meeting at which the vote objected to is tendered, and every vote not disallowed at the meeting is valid.
30.2 Any such objection must be referred to the chairman of the meeting, whose decision is final.

31. Poll votes
31.1 A poll on a resolution may be demanded:
31.1.1 In advance of the general meeting where it is to be put to the vote, or;
31.1.2 At a general meeting, either before a show of hands on that resolution or immediately after the result of a show of hands on that resolution is declared.
31.2 A poll may be demanded by:
31.2.1 The chairman of the meeting;
31.2.2 The directors;
31.2.3 Two or more persons having the right to vote on the resolution; or
31.2.4 Persons representing not less than one tenth of the total voting rights of all the members having the right to vote on the resolution.
31.3 A demand for a poll may be withdrawn if:
31.3.1 The poll has not yet been taken; and
31.3.2 The chairman of the meeting consents to the withdrawal.
31.4 Polls at a general meeting must be taken immediately and in such manner as the chairman of the meeting directs.

32. Content of proxy notices
32.1 Proxies may only validly be appointed by a notice in writing (a “proxy notice”) which:
32.1.1 states the name and address of the member appointing the proxy;
32.1.2 identifies the person appointed to be that member’s proxy and the general meeting in relation to which that person is appointed;
32.1.3 is signed by or on behalf of the member appointing the proxy, or is authenticated in such manner as the directors may determine; and
32.1.4 is delivered to the Company in accordance with the articles and any instructions contained in the notice of the general meeting to which they relate.
32.2 The Company may require proxy notices to be delivered in a particular form, and may specify different forms for different purposes.
32.3 Proxy notices may specify how the proxy appointed under them is to vote (or that the proxy is to abstain from voting) on one or more resolutions.
32.4 Unless a proxy notice indicates otherwise, it must be treated as:
32.4.1 allowing the person appointed under it as a proxy discretion as to how to vote on any ancillary or procedural resolutions put to the meeting; and
32.4.2 appointing that person as a proxy in relation to any adjournment of the general meeting to which it relates as well as the meeting itself.

33. Delivery of proxy notices
33.1 A person who is entitled to attend, speak or vote (either on a show of hands or on a poll) at a general meeting remains so entitled in respect of that meeting or any adjournment of it, even though a valid proxy notice has been delivered to the Company by or on behalf of that person.
33.2 An appointment under a proxy notice may be revoked by delivering to the Company a notice in writing given by or on behalf of the person by whom or on whose behalf the proxy notice was given.
33.3 A notice revoking a proxy appointment only takes effect if it is delivered before the start of the meeting or adjourned meeting to which it relates.
33.4 If a proxy notice is not executed by the person appointing the proxy, it must be accompanied by written evidence of the authority of the person who executed it to execute it on the appointor’s behalf.

34. Amendments to resolutions
34.1 An ordinary resolution to be proposed at a general meeting may be amended by ordinary resolution if:
34.1.1 notice of the proposed amendment is given to the Company in writing by a person entitled to vote at the general meeting at which it is to be proposed not less than 48 hours before the meeting is to take place (or such later time as the chairman of the meeting may determine); and
34.1.2 the proposed amendment does not, in the reasonable opinion of the chairman of the meeting, materially alter the scope of the resolution.
34.2 A special resolution to be proposed at a general meeting may be amended by ordinary resolution, if:
34.2.1 the chairman of the meeting proposes the amendment at the general meeting at which the resolution is to be proposed; and
34.2.2 the amendment does not go beyond what is necessary to correct a grammatical or other non-substantive error in the resolution.
34.3 If the chairman of the meeting, acting in good faith, wrongly decides that an amendment to a resolution is out of order, the chairman’s error does not invalidate the vote on that resolution.

PART 4 – ADMINISTRATIVE ARRANGEMENTS

35. Means of communication to be used
35.1 Subject to the articles, anything sent or supplied by or to the Company under the articles may be sent or supplied in any way in which the Companies Act 2006 provides for documents or information which are authorised or required by any provision of that Act to be sent or supplied by or to the Company.
35.2 Subject to the articles, any notice or document to be sent or supplied to a director in connection with the taking of decisions by directors may also be sent or supplied by the means by which that director has asked to be sent or supplied with such notices or documents for the time being.
35.3 A director may agree with the Company that notices or documents sent to that director in a particular way are to be deemed to have been received within a specified time of their being sent, and for the specified time to be less than 48 hours.

36. No right to inspect accounts and other records
Except as provided by law or authorised by the directors or an ordinary resolution of the Company, no person is entitled to inspect any of the Company’s accounting or other records or documents merely by virtue of being a member.

DIRECTORS’ INDEMNITY AND INSURANCE

37. Indemnity
37.1 Subject to article 37.2, a relevant director of the Company or an associated company may be indemnified out of the Company’s assets against:
37.1.1 any liability incurred by that director in connection with any negligence, default, breach of duty or breach of trust in relation to the Company or an associated company;
37.1.2 any liability incurred by that director in connection with the activities of the Company or an associated company in its capacity as a trustee of an occupational pension scheme (as defined in section 235(6) of the Companies Act 2006);
37.1.3 any other liability incurred by that director as an officer of the Company or an associated company.
37.2 This article does not authorise any indemnity which would be prohibited or rendered void by any provision of the Companies Acts or by any other provision of law.
37.3 In this article:
37.3.1 companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate; and
37.3.2 a “relevant director” means any director or former director of the Company or an associated company.

38. Insurance
38.1 The directors may decide to purchase and maintain insurance, at the expense of the Company, for the benefit of any relevant director in respect of any relevant loss.
38.2 In this article:
38.2.1 a “relevant director” means any director or former director of the Company or an associated company;
38.2.2 a “relevant loss” means any loss or liability which has been or may be incurred by a relevant director in connection with that director’s duties or powers in relation to the Company, any associated company or any pension fund or employees’ share scheme of the Company or associated company; and
38.2.3 companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate.