Company law

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Manish S (Querist)
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15 January 2017 hi All

Can anyone explain me for the below term

Save as provided in this Act or the rules made thereunder

Hitendra Jain

Hitendra Jain (Expert)
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15 January 2017 For any subject any legal document or system try to cover all possible situations. In one time it may be take simultaneously for all or a few and for another time one situation get privilege over one another or some of them. When a situation is simultaneously move with another then law state in that situation by way of the phrase "Save as otherwise provide" and when a situation require to have privilege then it considered under the law as "Notwithstanding anything contained in this". Those phrase adjoin with the scope or legal objects with which they are adjusted or get privilege. These objects may be; this section, this act, any other law for the time being in force, rules or regulation. When the objects followed by the phrases then they make complete sense for which law provide complete or absolute situation.
In your query the phrase "Save as provided in this Act, or the Rules made thereunder" means what followed by this phrase will simultaneously goes with any other provision of the act or any rules made by the concerned authority who get that authority to make rules under any of the provision of the act.
For example section 6 of the act provides "Save as otherwise expressly provided in this Act; the provision of this Act shall have effect notwithstanding anything to the contrary contained in the Memorandum or Articles of a Company,........"
This phrase state that if anything which is not valid in accordance with the provision of the act in the memorandum or articles shall be void but if "any other provision of the act provides that if a situation covered in the act and the memorandum or articles both then that situation shall be governed with the memorandum or that of the articles." then the effect of section 6 shall not have effect but that other section shall cover the situation and accordingly the memorandum or articles will be valid to that object.
Section 14 of the act provides alteration of the articles. Sub-section 1 starts with "Subject to the provision of this Act and the condition contained in its Memorandum, if any, ........"
Now take both the sections simultaneously. Section 6 provides act shall privileged no effect of memorandum and article. Act do not ask to have any condition which required to follow if company wants to alter its articles. But a company in its memorandum may make any condition like 100% consent of the members or board for alteration of Articles. This requirement is not void because it is not contrary to any provision of the act. Hence irrespective of section 6 company shall be bind to follow its memorandum by virtue of section 14 because of the clause "Save as otherwise expressly provided in this Act" in section 6.

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