Company Law methods Essay Example | Topics and Well Written Essays - 3000 words

Company Law methods - Essay sampleA attach to will also be governed by its own Memorandum and Articles of linkup. Now well shake off brief discussion about these two concepts which are considered to be the life of a companion.This is the most beta document in the ships company as it set out the constitution of a company and it is the founding on which the structure of the company is based. In other words it may say that the identity of the company is based on this. It prescribes the name of the company, its registered office, objects and capital. It also defines the extent of its powers concerning to the matters relating to its function or otherwise. The memorandum is in point a charter of the company.A company can exercise only such powers which are both expressly stated in the memorandum or as may be implied there from including matters attendant to the powers so conferred. A company must act within and not outside the scope of its memorandum. both transaction which is outside the ambit of the powers of the company shall be ultra virus and void.The articles of association of a company are the internal regulations which govern the management of the internal affairs of the company. As it meant for internal affairs, the members have full control and may by resolution alter them as they think fit so enormous as they do not exceed the limits defined by the memorandum. In other words Articles of Association form the basis of a covenant /contract that regulates the companys internal procedure and set out the rights of the shareholders as conferred by their ownership. Contractual effect of Memorandum and Articles of Association Memorandum and Articles of the company when registered, have binding forces as they bind the company and its members to the same extent as if they have been signed by the company and its all(prenominal) member. In other words, the memorandum and Articles of the company when registered,bind the members to the company and the com pany to its members, but onin the capacity of members of the company and not in any other capacitysuch as directors etc. This clause is combine in Sec.14 (1) of the3Company Law 1985. i.e. Sec.14 (1) of the Company law 1985 says that Subject to the provisions of this Act, the memorandum and articles, when registered, bind the company and its members to the same extent as if they respectively had been signed and sealed by each member, and contained covenants on the range of each member to observe all the provisions of