Skip to content

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

Sunrise Gadgets Ltd altered its articles but issued 200 copies of the articles without noting the alteration. Under Section 15, what penalty applies to the company and every officer in default?

The company and every officer in default are liable to a penalty of Rs 1,000 for every copy of the articles issued without the alteration. Section 15 requires the alteration to be noted in every copy, and the penalty is counted per copy, not as a lump sum.

  1. ARs 1,000 for every copy issued without the alterationCorrect
  2. BRs 1,000 in total regardless of copies
  3. CRs 10,000 per day
  4. DNo penalty, only a warning

Explanation

Section 15(1) requires every alteration to be noted in every copy of the articles. Under Section 15(2), the company and each officer in default are liable to a penalty of one thousand rupees for every copy issued without the alteration. The penalty is per copy, not a lump sum.

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