This document governs how the company is run and is publicly available at Companies House. It determines the types of share classes and the rights associated with each share class. As well as determining the structure of the board of directors and the responsibilities of the directors. As well as articles of association companies are governed by legislation. In the UK this is the Companies Act 2006.
Model articles (previously known as Table A) are the standard set of articles for a company and most companies when they incorporate use them.
The nominal value of a share relates to the limitation of liability the owner of a share has in relation to the company. For this reason it is often good practice to select a small nominal value since this reduces the liability associated with a share. Once the owner of a share has paid the nominal value of a share the the company the share is fully paid up and no further money is due in relation to the share. At incorporation it is possible for a share to be issued without the nominal value being paid up. However after incorporation under UK company law if a share is issued it must be fully paid up immediately.
Limited liability is great for the owner of the share as it means their downside is capped but their upside is potentially unlimited.
From the example in the video the founder is issued with 4 £1 Ordinary Shares and in this case the shares are fully paid up, which means the company receives £4.