PNC Ltd. is a company limited by guarantee and not having a share capital. The Articles of Association (AOA) of the company give any person a right to participate in the divisible profits of the company otherwise than as

According to section 4(7) of the Companies Act, 2013, any provision in the memorandum or articles, in the case of a company limited by guarantee and not having a share capital, purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member, shall be void. As per Section 6 of the Companies Act, 2013, any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be. On basis of the above provision in the AOA of the PNC Ltd to give any person a right to participate in the divisible profits of the Company otherwise than as member is invalid.