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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