DRAFTING OF ARTICLES

1
DRAFTING OF ARTICLES MEMORANDUM OF ASSOCIATION

• A PRESENTATION BY-R.P.SHARMA B.COM(H),FCA,LL.B.

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MEANING LEGAL EFFECT

• INTERNAL REGULATIONS OF THE CO. CHARTER OF
  INCORPORATION
• BINDS THE COMPANY VIS-A-VIS MEMBERS
• BINDS MEMBERS VIS-A-VIS COMPANY
• BINDS MEMBERS INTER SE.

3
Shareholders/Joint venture Agreements

• AGREEMENT AMONGST SHAREHOLDERS
• PRIVATE DOCUMENT
• CONTACTUAL FREEDOM
• NO AUTOMATIC APPLICABLITY

4
MEMORANDUM-BASIC STRUCTURE

• NAME CLAUSE
• OBJECT CLAUSE
• REGISTERED OFFICE CLAUSE
• CAPITAL CLAUSE
• LIABLITY CLAUSE
• SUBSCRIPTION CLAUSE

5
ARTICLES -SCHEDULE-1

• TABLE A-FOR A COMPANY LIMITED BY SHARES
• TABLE C-COMPANYLIMITED BY GUARANTEE NOT HAVING
  A SHARE CAPITAL
• TABLE D-COMPANY LIMITED BY GUARANTEE HAVING A
  SHARE CAPITAL
• TABLE E- UNLIMITED COMPANY.

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TABLE A

• INTERPRETATION
• SHARE CAPITAL
• GENERAL MEETINGS
• BOARD MEETINGS
• MANAGER/SECRETARY
• SEAL
• DIVIDEND/RESERVES

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TABLE A-CONTD.

• ACCOUNTS
• CAPITALISATION OF PROFITS
• WINDING UP
• INDEMNITY

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IMPORTANT CLAUSES

• SHAREHOLDING RATIO
• BOARD OF DIRECTORS
• SHAREHOLDERS MEETINGS
• SHARE TRANSFER RESTRICTIONS
• DEADLOCK RESOLUTION
• ARBITRATION

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BOARD CONTROL

• STRENGTH OF THE BOARD
• QUORUM
• RIGHT TO NOMINATE DIRECTORS
• CHAIRMAN
• CASTING VOTE
• RESERVE MATTERS

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SHAREHOLDERS MEETING

• QUORUM
• RESERVE MATTERS
• CHAIRMAN

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SHARE TRANSFER

• RESTRICTIONS
• PRE EMPTIVE RIGHTS
• VALUATION

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DEADLOCK RESOLUTION

• DEFINE DEADLOCK
• RESOLUTION MECHANISM
• CONSEQUENCES OF NON RESOLUTION

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ARBITRATION

• EVENT OF DISPUTE/DIFFERENCE
• WHO TO BE THE ARBITRATOR
• LAW APPLICABLE
• VENUE LANGUAGE
• COSTS
• RIGHT TO CLAIM INTERIM RELIEF

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CERTAIN IMPORTANT PROVISIONS

• GUARANTEES
• BORROWINGS
• DIVIDENDS
• AUDIT
• TRADE NAMES/MARKS
• KEY APPOINTMENTS

15
THANK YOU

• R.P.SHARMA