What Are The Restrictions On The Articles Of Association According To The Pakistan Corporate Law?

The restrictions on Articles of Association have been promulgated in the light of certain facts and circumstances, all of which are discussed below:

An Articles of Association should not clash with Company Ordinance 1984 or Memorandum of Association, that is, it shouldn't be inconsistent with Memorandum or Company's Ordinance 1984.  Also there is no retrospective effect of the Articles of Association that is it could not be done from a back date.  Moreover alterations regarding increasing the liability of the members (those who have not voted could not be coerced to increase their liability), further investment in the company (those who have not voted could not be forced to invest) are also some restrictions on the Articles of Association.  In the case of bonafide alteration, the larger interest of the company, the interest of the general body of the company should always be given priority to.   Even if the alteration has a vote of 80 or 90 percent in any of the previously mentioned cases, such a clause, if existent is null and void.  Besides the declaration by a company that the Articles of Association are not alterable is not a valid claim.