ISSN 2581-5369
HeinOnline, MANUPATRA, Google Scholar Indexed
What Overpowers the other: Shareholder Agreement or Article of Association – The Indian Position
-
Kratee Aggarwal
Student at O.P Jindal Global University, India
Abstract
A company is governed by its Article of Association. Article of Association is a document governed by the Companies Act, 2013, containing provisions for internal regulation which are to be adhered to by the Shareholders, directors and members of the company. Whereas a Shareholder Agreement is a type of contract bound by the Indian Contract Act, 1872 laying down certain duties, right and obligations of the shareholders. Quite often the provisions of the Article of Association and Shareholder Agreement are conflicting which makes it difficult to decide whether to rely on the Article of Association or the Shareholder Agreement. It was the V.B. Rangaraj v. V.B. Gopalakrishnan and others case that clarified the position in cases of conflict between a company’s Shareholder agreement and Articles of Association concerning limitation on shares transferability.
Type
Research Paper
Information
International Journal of Law Management and Humanities, Volume 4, Issue 3, Page 4019 - 4024
DOI: https://doij.org/10.10000/IJLMH.11483Creative Commons
This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.
Copyright
Copyright © IJLMH 2021