Company Law- Articles of Association

| February 15, 2014

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There is considerable controversy concerning the types of rights and obligations that can be enforced, and about who can enforce them?this uncertainty has been compounded by the recent change in wording of the section of the 2006 Act, which is yet to be processed by the courts, and it is therefore unclear what, if any, changes this has made. This uncertainty has led practitioners and judges to view section 33 with suspicion, and it is generally bypassed by the use of shareholders agreements.?
Sharazi, G To what extent does the section 33 contract differ from an orthodox contract? (2013) Company Lawyer, volume 34, issue 2, pages 36-42, at page 36.
In the light of the above statement, critically evaluate whether section 33 of the Companies Act 2006 has clarified the position regarding whether rights contained within a Company?s constitution may be enforced, or be expected to be enjoyed on an on-going basis, by a member, or whether the situation remains that the only way a shareholder can realistically enforce a right is through a shareholders agreement.
The word limit for this assignment is 1500 words, excluding footnotes and bibliography.
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