Under s33 Companies Act 2006, the articles of association form a contract. Between whom does this contract operate?

Correct answer: C) Between the company and its members, and between the members themselves, in their capacity as members

Explanation

Section 33 makes the constitution binding on the company and its members as if they had each covenanted to observe it. The contract is enforceable only in respect of membership rights, so in Eley v Positive Government Security Life Assurance a solicitor could not enforce an article appointing him as solicitor, as this was an outsider right (compare Hickman v Kent or Romney Marsh Sheep Breeders' Association). Creditors and the Registrar are not parties to the s33 contract.