Companies Act Section 10 — Effect of memorandum and articles
CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO
Commercial / Corporate
Summary
Sub-section (1) states that once the memorandum and articles are registered, they legally bind the company and its members just as if the company and every member had personally signed a contract agreeing to follow all the provisions in those documents. This means the memorandum and articles operate as a binding agreement between the company and each member.
Sub-section (2) provides that any money a member is required to pay to the company under the memorandum or articles is treated as a debt owed by that member to the company. This makes such payments legally enforceable as a debt.
Official Text
(1) Subject to the provisions of this Act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles.
(2) All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company. 2[