Smart Ltd. wants to include a provision in the articles of association by altering it to limit the company's share capital to a fixed amount. Can it do so? Will your answer be different if 100% shareholders agree for suc

A provision of the Articles which has the effect of limiting the company's share capital to a fixed amount would have no effect being contrary to the Act. [ Miheer Hemant Mafatlal v. Mafatlal Industries Ltd. (1987) 89 Bom LR 86 (Bom) ]. The legal position shall not change even if 100% shareholders agree for such alteration as all members become bound by a valid alteration whether they voted for or against the resolution. Therefore, Smart Ltd. cannot include a provision in the articles of association by altering it to limit the company's share capital to a fixed amount, even if 100% shareholders agree.