The memorandum and articles must be read together in the event of any ambiguity. Explain the given statement referring a suitable case law.
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2021
The memorandum and articles must be read together in the event of any ambiguity. Explain the given statement referring a suitable case law.
Answer & Explanation:
The memorandum and articles must be read together in the event of any ambiguity. In Angostura Bitters & Co. Ltd. v. Kerr, (1933) AC 550: (1934) 4 Com Cases 1 ; the Privy Council held, "Except in respect of such matters as must be statutorily provided for by the conjunction with the articles, the two documents must be read together at all events so far as may be necessary to explain any ambiguity appearing in the terms of the memorandum or to supplement it upon any matter as to which it is silent"-quoted with approval by the Supreme Court in A. Lakshmanaswami Mudaliar v. LIC of India Ltd. (1963) SC 1185 .
Topics: Company Law
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