Contractual Nature

STATUTORY CONTRACTS EMBODIED IN ARTICLES AND MEMORANDUM OF ASSOCIATION OF A COMPANY

The articles and memorandum of associations of a company are the preliminary documents which set out the guidelines for the constitution of a company. There are various rules and procedures indicated in the articles/memorandum which are fundamental in governance of the company by the directors. Apart from being a rule book of the company the provisions of the articles and memorandum levy contractual obligations between the company and its members as well as on the on the members inter se.