Effect of memorandum and articles
📚 Law Minded summary
Once registered, the memorandum and articles bind the company and every member as if each of them had personally signed the documents and promised to keep to them.
In practice that makes the articles a contract — between the company and its members, and between the members themselves. Money owed by a member to the company under those documents counts as a debt.
(1) Subject to the provisions of this Act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles.
(2) All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.
All sections in Chapter II — Incorporation of Company and Matters Incidental Thereto