ALTERATION OF ARTICLE OF ASSOCIATION

                                  ALTERATION OF ARTICLE OF ASSOCIATION

The article of association is the rules and regulation or the buy-laws which govern the internal management of a company. A company can alter article of association by passing a special resolution in a general meeting. However a company does not unlimited power to alter the article. The alteration is subject to the following limitation or restriction:

1 .       Must not inconsistent with the act.

2.       Must not be inconsistent to the memorandum.

3.       Must not sanction anything illegal.

4.       Must be for the benefit of the company.

5.       Alteration by special resolution.

6.       Must not increase liability for members.

7.       Must not be inconsistent with an order of tribunal.