What is the meaning and significance of the Doctrine of indoor management 7 Are there any exceptions to this doctrine ? (C S. Exam ) Or
Write a note on Dochine of CotstructiNe notice. (C S Exam )
Ans. Arbcles of Assoeiation refer to byelaNvs of the company which governs the internal management of Ihe company and which is given to the company for its internal governance This is internal hence if given by the shareholders to themselves Every private compar y limited by shares as also a company Ihnited by guarantee and companies having unlimited liability must frame their own Articles and must get it registered along with the femorandan. However a pttblic company limited by shares may or may not have its own Atticles.
Voluntary. Section 26 of Indian Connpanies Aet makes it voluntary for the public ComQany limited by shares. They may adopt all or any of the regulations contained in Table 'A of Schedule I of the Act Section 28 provides that if such a companv does not frame its on II Articles and does not register its Olin Articles or does not exclude or modify the regulations contained in ibid -A motile preparing and registering its oven Articles then the whole of Ubbe -ok- Al be applicable to that company as if it is its own Article of if the company has framed and registered its NnArticles
INCORPORATION OF A COMPANY 97
the £editors and general public the Articles of £ In c the essential purpose of supplementmg the Memorandum.
The Arcs play an important role in (he affairs of a company and are :; rat resonance to the Memorandum t3ut however, important it may be,
Am le. are subordinate to, and controlled by,l 'The Eli plan a part subsidiary to the memorandum of association. They accept the r norandum of association as the clharter of incorporation of trio company, al t so accepting it, the articles proceed to dchne the duties, the rights and: ponders of the governing body fhemsel-ves and the company at I Nrge... [AshuouryRly Carriage & Iror Co. Ltd. vs. Riche, supra].
Thus the memorandum defines the scope and powers of the company, the area beyond which the company cannot go The articles, on the other hand, lay down the regulation for govemaulce of the company within the boundaries set out by the memorandum
FORM AND SIGNATURE OF ARTICLES