Section 10: Effect of memorandum and articles
This section is for outlining the binding effect of a company's registered memorandum and articles on the company and its members.
The section, clause by clause
What the section says
In plain terms
(1)Subject to the provisions of this Act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles.
When a company's memorandum and articles are registered, they are binding on the company and its members as if they had personally signed them, requiring them to follow all the provisions outlined in the documents.
(2)All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.
Any money a member owes to the company based on the memorandum or articles is considered a debt they must pay to the company.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. The words “and a common seal” omitted by Act 21 of 2015, s. 3 (w.e.f. 29-5-2015).
- 2. Ins. by Act 22 of 2019, s. 3 (w.e.f. 2-11-2018).
- 3. Subs. by Act 1 of 2018, s. 6, for “on and from the fifteenth day of its incorporation”(w.e.f. 27-7-2018).
- 4. Subs. by Act 21 of 2015, s. 5, for clause (b) (w.e.f. 29-5-2015).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.