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Effect of Memorandumm and Articles

The Memorandum and Articles, where registered, bind the company and its members as if they had been signed by each member and contained covenants by members to observe all the provisions of the members as members and not in any other capacity, and also member’s interest. The memorandum and articles are public documents and a person contracting with the company is presumed to have knowledge of the contents. But he has a right to assume that the provisions of the articles have been observed by the company’s officers. This is known as the “doctrine of indoors management”.     
 

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