Companies Act, 2017 — section 17

17. Effect of memorandum and articles..—(1) The memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by each member and contained a covenant on the part of each member, his heirs and legal representatives, to observe and be bound by all the provisions of the memorandum and of the articles, subject to the provisions of this Act. 1 [(2) All moneys payable by a subscriber in pursuance of his undertaking in the memorandum of association against the shares subscribed shall be a debt due from him and be payable in such time, manner and condition as may be notified by the Commission.] 1 [(3)* * * * * * *]

(4)Any violation of this section 1[direction given by the registrar] shall be an offence liable to a penalty of level 1 on the standard scale. 1 Subs. Omitted and Ins. by Act No.XXXVII of 2021, s.4.