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CMA Intermediate · Business Laws and Ethics · Company Types, Promotion, Formation and Related Procedures

Which statement about the articles of a company registered after the commencement of the Companies Act, 2013 is correct?

Where the registered articles do not exclude or modify the applicable model articles, those model regulations apply to the company so far as applicable, as if they were part of its registered articles.

  1. AThe articles must be a verbatim copy of the model articles, with no additions permitted
  2. BModel articles do not apply to such a company at all
  3. CWhere the registered articles do not exclude or modify the model articles, the model regulations apply so far as applicableCorrect
  4. DEntrenchment provisions can be inserted in a private company's articles by a simple majority

Explanation

The Act says that for a company registered after commencement, the model articles apply as if contained in its registered articles to the extent the registered articles do not exclude or modify them. Additional matters may be included, so the verbatim-copy option is wrong. Entrenchment by amendment in a private company needs agreement of all members, not a simple majority.

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