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How to Save Company Constitution in PPR

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The lecture from Open Tuition emphasizes the importance of the Memorandum of Association as a key document in a company's Constitution, traditionally considered superior to the Articles of Association. If conflicts arose between the two documents, the Memorandum would take precedence. However, significant changes occurred in 2006, altering this structure. The Memorandum is now simply a record indicating that subscribers wish to form a company and agree to become its members, diminishing its previous authoritative role. The lecture also hints at further explanations regarding what a "subscriber" is in the context of company formation.

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What is a constitution of a corporation?

Corporate Constitution means the memorandum and articles of association of the Company currently in effect as of the date hereof.

Can a corporation have a constitution?

Today, the Companies Act requires that all registering businesses submit their constitution to the local registrar. The constitution will set the operating organizational structure of the business. The company constitution will often include the following information: The name of the company.

What is a company constitution called?

A legally binding agreement between your company and its internal members that defines rules related to internal governance, business activities and rights and obligations of its internal members. It is submitted as part of a companys incorporation process.

Do corporations override constitution?

(2) The company may modify or repeal its constitution, or a provision of its constitution, by special resolution. Note: The company may need leave of the Court to modify or repeal its constitution if it was adopted as the result of a Court order (see subsection 233(3)).

Why does a corporate entity need a constitution?

It protects them, and the company, from interference by shareholders in the day-to-day management of the company. If the shareholders do not like what the directors are doing, they can remove them or, less drastically, pass a special resolution giving them a particular direction.

What is a business constitution document?

A legally binding agreement between your company and its internal members that defines rules related to internal governance, business activities and rights and obligations of its internal members. It is submitted as part of a companys incorporation process.

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