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Company Law (b) From 1991 onwards nothing in a company's memorandum could affect the capacity of a company to enter into a transaction, following the new section 35, and further that no one has constructive notice of any entry on the company register, e.g. of the memorandum and articles, by virtue of section 711A. In addition, new section 53A removes any constitutional limitations on the powers of the directors and others to act on behalf of the company so far as bona fide third parties are concerned, whilst preserving the existing internal rights of members to control the directors if they do not act contrary to the company's constitution. Where there are two (or more) persons dealing with a company, one of whom is a director and the other is neither a director nor connected with one, and where that second person is dealing in good faith then, he may continue...

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