Ashley Home Furnishing Ltd - Business Model

Element
Constitution

Analysis
Private limited company formed in 1951 incorporated under the Companies Act 1948.
Memorandum of Association, Articles of Association, Register of shareholders, etc. held at the Registered Offices, Walton-on-Thames.
Major share holders are the Ashley family (51%) and directors of the company.

Evaluation
Ashley's is unique since similar stores are owned by large multiples rather than family owned.
As no external shareholders are involved it is difficult to raise additional capital for expansion.
Employees like being part of a family business rather than a public company.
The Articles of Association need to be amended with respect to the voting rights of shareholders.

Strategy
To widen share ownership to employees.

To resist becoming a publicly owned company.
To review the constitution in general to see whether it is still appropriate.


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