Thursday, 17 April 2014

12.4.5 (Alteration of Articles)



Section 31 provides that subject to the provisions of the Act and to the conditions contained in its memorandum, a company may, by special resolution alter or add to its articles. A printed or type written copy of every special resolution altering the articles must be filed with the Registrar within 30 days of the passing of the special resolution.

The right to alter just by passing special resolution is so important that a company cannot in any manner deprive itself of the power to alter its articles. Also, the power to reduce or increase the number of members in the case of a company limited by guarantee without share capital, from time to time, as given in the articles can be done by a special resolution of the general body of members. However, in spite of the power to alter its articles, a company can exercise this power subject to certain limitations.

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