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Article of Association: Legislative and Judicial Interpretation

The Article of Association (hereinafter referred to as AoA) is a document of a company, which regulates the internal management, and conduct of the business of a company. It deals with the rights of a member of the company. The AoA is signed by the subscriber of the memorandum and prescribes the regulation of the …

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Role of SEBI in Indian Securities Market

In our country the primary legislation that was passed to ensure the orderly and healthy growth of the capital market with adequate protection to investors was the Capital Issues (Control) Act, 1947. The controller of Capital Issues was entrusted with the responsibility of regulation of capital related problems within the country under this act. However, …

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Promoters of a Company: Legal Position

Promoters of a Company

Promoter is someone who brings about the incorporation and organization of a corporation. He brings together the persons who become interested in the enterprise, aids in procuring subscriptions, and sets in motion the machinery which leads to the formation itself.
Section 2(69) of The Companies Act, 2013 defines the term “promoter” as a person who has been named in the prospectus or is identified by the company in the annual return referred to in section 92, a person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director and a person in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to the act.

NEED OF MEMORANDUM OF ASSOCIATION

Memorandum of association is the fundamental document for the incorporation of the company. [1] “Charter” is the other name used for memorandum of association. This is the basic document that defines the company’s objectives and the rights of the members. Without the memorandum of association, no company can be incorporated. Memorandum of association sets the …

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