Shree Private Limited was formed on 25th April, 2022. At the time of formation, it had provided in its articles that the company shall not be…

(a) Section 50 of the Companies Act, 2013, deals with acceptance of call money in advance by a company which requires that such acceptance can be made only if the company is authorised by its articles to do so. According to section 6 of the Companies Act, 2013, 'Save as otherwise expressly provided in this Act- (a) the provisions of this 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, whether the same be registered, executed or passed, as the case may be, before or after the commencement of this Act; and (b) any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant (in conflict) to the provisions of this Act, become or be void, as the case may be.' In simple words, the provisions of this Act shall have overriding effect. It is also to be noted that section 6, starts with “Save as otherwise ....". It means that if any other section of the Act says that article is superior then we will treat it accordingly. Here, in the given case, articles of Shree Private Limited provide that the company shall not be permitted to accept or keep advance subscription or call money in advance and accordingly here, such provision contained in the articles of association will prevail and cannot be considered as void.