Page 2: Ownership and management structure
asos.com is a public limited company (plc). This means that the business is owned by shareholders and that its shares can be purchased by the general public. asos.com shares are traded on the Alternative Investment Market (AIM), which is part of the London Stock Exchange.
Joining AIM has several advantages for a growing company such as asos.com. AIM-listed companies do not need to comply with the strict rules that must be followed by businesses listed on the main London stock market. They do not need to meet any size threshold, either in terms of market capitalisation or the numbers of shares that they issue. This means it is easier and cheaper to obtain an AIM listing. It provides smaller companies with a chance to raise capital through the sale of shares. This capital can be used to finance growth.
As a limited company, asos.com is required by law to have a memorandum of association and articles of association. A memorandum of association sets out the name and purpose of the company and the number of shares it can issue. The articles of association sets out the rights of shareholders, the roles of directors and other factors that relate to the control and management of the company. These documents establish a company as a legal entity. Without this legal framework, the business would not be able to issue shares.
The asos.com board consists of two non-executive directors and three executive directors. Non-executive directors do not have day-to-day operational responsibilities for the business. They are invited to join the board because they bring experience and qualities that can guide the strategic direction of the company.