Section 10 of the Companies Act, 2013
Section 10 of the Companies Act, 2013 deals with the effect of memorandum and articles of association of a company.
📘 Section 10 – Effect of Memorandum and Articles
(1)
Upon registration, the Memorandum and the Articles of Association of a company shall bind:
the company and its members, and
the members inter se,
as if they had been signed by the company and each member individually.
(2)
All money payable by any member to the company under:
the Memorandum, or
the Articles,
shall be treated as a debt due from him to the company.
(3)
This section does not affect any contract made before the registration of the company.
📝 In Simple Words:
The Memorandum and Articles are like a contract between the company and its members.
Members must follow them and can be held liable for any money due.
Pre-incorporation contracts are not covered under this section.
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