8 Limitations and Powers of a Company to Alter its Article of Association (Companies Act, 1956)
A company has an inherent power to alter its articles. Section 31 of the Companies Act conferred the power of alteration to the company which states that a company may alter its articles by passing a special resolution to this effect. A company may even change its Articles with retrospective effect.Any provision making Articles unalterable is regarded as bad in law. Company cannot deprive itself, by an express provision in the Articles or independent contract, of the power to alter its articles. However, there are certain limitations or restrictions on the power of the company to alter its articles of association. Image Source: cdn.indiafilings.com ADVERTISEMENTS: These are as follows:1. Articles can be altered only by a special resolution. Articles can never be altered by an ordinary resolution even if they…