What is a key feature of the governance of a private limited company?

A key feature of the governance of a private limited company is that it must operate according to its articles of association. The articles of association outline the rules and regulations for the company's internal management and govern the relationship between the company, its shareholders, and its directors. This legal document is essential as it specifies the rights and responsibilities of the parties involved, the procedures for meetings, decision-making processes, and how shares can be issued and transferred.

This requirement ensures that the company adheres to its established framework and complies with relevant regulations, promoting transparency and accountability in its operations. It serves as a foundational document that guides the governance structure, ensuring that the company operates in a manner consistent with its objectives and shareholder expectations.