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Unit 6: Articles of Association

6.12 Review Questions Notes

1. What are articles of association? Enumerate some of the items included therein.
2. Discuss whether it is legally compulsory for a company to have its own articles of
association.
3. What restrictions should the articles provide to give a company the status of a private
company?
4. Distinguish between articles and memorandum.

5. Explain the procedure laid down in the Companies Act, 1956 to alter the articles of a
company.
6. Discuss the limits upon the powers of a company to alter its articles.

7. Discuss the binding effect of memorandum and articles, when registered, on the members
and outsiders.
8. Explain the doctrine of constructive notice. Are there any exceptions to the said doctrine?
9. Explain and illustrate the ‘Doctrine of Indoor Management’. What are the exceptions to
this rule?
10. Explain the rule laid down in the Royal British Bank vs. Turquand and state the exceptions
to the rule.
11. State the inter-relationship of Doctrine of Indoor Management with the Doctrine of
Constructive Notice.

12. Examine the legal effect of the articles. How far is a provision depriving the company of
the power to alter the articles valid?

Answers: Self Assessment

1. Schedule I 2. Articles of Association
3. Memorandum of Association 4. Section 26

5. (a) 6. (c)
7. (b) 8. (a)
9. True 10. True
11. False 12. True

13. True

6.13 Further Readings

Books Aggarwal, Rohini (2003), “Student’s Guide to Mercantile and Commercial Laws,”
Taxmann’s, New Delhi.

Avtar Singh, Company Law, Eastern Publishers.
Begrail, Ashok K, Company Law, Vikas Publishing House, Delhi.
Kapoor, N.D, Company Law, Sultan Chand & Sons, New Delhi.

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