Section 33 of the Companies Act, 2013
vSection 33 of the Companies Act, 2013
Title: "Effect of Registration"
This section explains the legal effects after a company is registered under the Companies Act, 2013.
Key Provisions of Section 33:
Binding Contract:
Once the certificate of incorporation is issued by the Registrar, the memorandum and articles of association become binding:
On the company and its members.
As if it were a contract between the company and each member.
And among the members inter se (with each other).
Right to Enforce Provisions:
The company can enforce provisions of the MoA and AoA against any member.
Similarly, a member can enforce those provisions against the company.
Members can also enforce provisions against each other, where applicable.
Limitations:
Only those clauses that concern membership rights and obligations are enforceable.
This does not apply to outsiders (non-members), even if mentioned in the MoA or AoA.
Example:
If a company’s Articles say that every member is entitled to one vote per share, and a company refuses to allow a member to vote, the member can go to court to enforce this right under Section 33.
RELATED Blog
0 comments