Articles of Association — SPCC STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceSPCCArticles of Association3 Marks
Question
“Articles of Association cannot be prepared whimsically.” — Explain
✓
Answer
Articles of Association is a public document showing rules about the internal management of the company. Directors cannot prepare this document as per their desire. Provisions that are violating the provisions of Memorandum and the Companies Act cannot be incorporated in the Articles of Association. While drafting the articles secretary should comply with all the provisions of Companies Act. Moreover no provision that violates any other Law in force in India can be made in the articles. So, this document cannot be prepared whimsically.
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