Question

Name and describe any two contents of the document containing the bye-laws of the company.

Answer 1

Contents of Articles of Association-

Section 5(1) and section 5(2) of the Companies Act, 2013 provide for the contents of the articles of association. The articles must contain the regulations for the management of the company along with the matters prescribed by the Central Government. Further, the articles of association must also contain the following:

-Share capital including sub-division, rights of various shareholders, the relationship of these rights, payment of commission, share certificates.

-Lien of shares: Lien of shares means to retain possession of shares incase the member is unable to pay his debt to the company.