Company law 2013 alteration of article alter kon study kar raha hai today question

Posted on 12-05-2016        By ADMIN

 Company law 2013 alteration of article alter kon study kar raha hai today question

Q. A Company, in which the directors hold majority of the shares, altered its articles so as to give power to directors to acquire shares of any shareholder, who competed with the Company‚Äôs business, to transfer his shares, at their full value, to any nominee of the directors.  S had some shares in the Company, and he was in competition with the Company.  Is S bound by the alteration

Yesterday logical question answer is below 

Q. A Limited Company is formed with its articles stating that one Mr. Srivastava shall be the solicitor for the Company, and that he shall not be removed except on the ground of misconduct.  Can the Company remove Mr. Srivastava from the position even though he is not guilty of misconduct?   

Answer .: As between outsiders and the Company, Articles do not give any right to outsiders against the Company, even though their names might have been mentioned in the Articles.  An outsider cannot take advantage of the Articles to form a claim thereon against the Company.  Thus, in the given case, Company shall succeed in removing Mr.Srivastava as the solicitor of the Company without incurring any obligations.  

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