Skip to content

CS Executive · Company Law and Practice · Memorandum and Articles of Association and its Alteration

Mehta Engineering Ltd, a public company, wants to convert into a private company by altering its articles. It passes a special resolution. Under section 14 as given, which statement is correct about the validity of this alteration?

The alteration is not valid unless the Central Government approves it by an order on an application in the prescribed form and manner. The special resolution alone is insufficient, and the order copy must be filed with the Registrar with the altered articles within fifteen days.

  1. AIt is valid on passing the special resolution, with filing needed only for records
  2. BIt is valid once the special resolution is filed with the Registrar in fifteen days
  3. CIt is not valid unless approved by an order of the Central Government on a prescribed applicationCorrect
  4. DIt is valid only if approved by an ordinary resolution of the board and the Registrar

Explanation

The second proviso to section 14(1) says an alteration converting a public company into a private company is not valid unless approved by an order of the Central Government on an application in the prescribed form and manner. A special resolution alone is therefore insufficient, and the order copy must be filed with the Registrar within fifteen days under section 14(2).

Did you get it right without looking?

One question tells you little. A timed set on Memorandum and Articles of Association and its Alteration shows your real accuracy, how long you take and where you lose marks.

Practise Memorandum and Articles of Association and its AlterationFree diagnostic mock

More Memorandum and Articles of Association and its Alteration questions