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Effect Of Memorandum And Articles / Binding Force Of Memorandum And Articles - Memorandum And Articles Of Association

   Posted On :  08.05.2018 07:49 am

Effect Of Memorandum And Articles / Binding Force Of Memorandum And Articles - Memorandum And Articles Of Association

Effect Of Memorandum And Articles / Binding Force Of Memorandum And Articles
 

Members Bound To Company:

 
 
Each member must observe the provisions of the articles and Memorandum.
 

Company Bound To Members:

 
 
A company is bound to members by whatever is contained in its Memorandum and articles of association.
 

Member Bound To Member:

 
 
The articles bind the member inter se, i.e., one to another so far as rights and duties arising from the articles are concerned.
 

Whether company or members bound to outsiders?:

 
 
No, the Memorandum or articles do not confer any contractual rights to outsiders against the company or its members, even though the name of the outsiders is mentioned in the articles.
 

Whether directors are bound by whatever is contained in the Articles?

 
Yes, the directors of the company derive their powers from the articles and are subjected to limitations, if any, placed on their powers by the articles.

 

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