Section 6: Act to override memorandum, articles, etc. Incorporation of company

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 6

Section 6 establishes the absolute supremacy of the Companies Act, 2013 over any contrary provisions contained in the memorandum, articles, board resolutions, or agreements executed by a company.

  • Core Legal Standard: Section 6 contains an express non-obstante declaration providing that the provisions of the Companies Act shall have effect notwithstanding anything to the contrary contained in the memorandum or articles of a company, or in any agreement executed by it, or in any resolution passed by the company in general meeting or by its Board of Directors.
  • Substantive Scope & Reach: Any provision contained in the memorandum, articles, agreement, or resolution to the extent to which it is repugnant or contrary to the provisions of the Act is void ab initio.
Key Landmark Precedents:
  • World Wide Agencies Pvt. Ltd. v. Margarat T. Desor (1990) 1 SCC 536: The Supreme Court ruled that statutory protections under the Companies Act cannot be curtailed or overridden by private agreements or clauses in the Articles of Association; the statutory mandate reigns supreme.
  • Claude-Lila Parulekar v. Sakal Papers (P) Ltd. (2005) 11 SCC 73: The Supreme Court affirmed that where there is a direct conflict between statutory mandates and articles of association, the statutory enactment prevails unequivocally, rendering contrary articles of no legal effect.
Legal Commentary:

Section 6 acts as the constitutional supremacy clause of Indian company law. Private contractual arrangements, including restrictive covenants in Shareholders' Agreements, voting pacts, or customized board appointment provisions, cannot derogate from mandatory statutory provisions such as director removal under Section 169, oppression remedies under Section 241, or auditor rotation under Section 139. Drafting corporate documents requires verifying that every customized clause conforms strictly with the overarching Act.