ACCA LW · Chapter 8 · Question 10 of 11
What is the position under s31 Companies Act 2006 regarding a company's objects?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Unless the articles specifically restrict them, a company's objects are unrestricted
Explanation
Under the Companies Act 2006 a company's objects are unrestricted unless its articles specifically restrict them. A company may choose to include restrictions, but under s39 the validity of an act done by the company cannot be called into question on the ground of lack of capacity because of anything in its constitution. The memorandum is now only a brief statement by the subscribers that they wish to form a company.
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