Section 36 of the Companies Act 2013: An Overview

Section 36 of the Companies Act 2013 plays a crucial role in the Indian corporate legal framework. It outlines the enforceability of a company’s Articles of Association (AoA) and Memorandum of Association (MoA) as binding contracts. According to this section, the MoA and AoA function as a legal agreement between the company, its shareholders, and the board of directors. This means that all parties involved are legally obligated to comply with the provisions set out in these documents.

The significance of Section 36 lies in ensuring corporate governance, protecting shareholder rights, and facilitating smooth business operations. Any violation of the terms mentioned in the MoA or AoA can lead to legal consequences. Therefore, businesses and investors need to understand the importance of these documents and ensure they comply with Section 36 of the Companies Act 2013.

By adhering to the regulations under this section, companies in India can maintain transparency, build trust with stakeholders, and operate within the legal boundaries set by the Indian government. This makes Section 36 essential for both new and established companies.
https://www.registerkaro.in/post/section-36-of-companies-act-2013-punishment-for-fraudulently-inducing-persons-to-invest-money