Discuss the limitation of a company while altering its Article of Association.

Limitations on Altering Articles of Association:

1. Legal Constraints: Companies must adhere to the Companies Act and other relevant legislation when altering their articles. Any changes that contravene these laws are invalid.

2. Shareholder Approval: Most jurisdictions require shareholder approval for amendments to the articles. This ensures that shareholders have a say in significant changes that could affect their rights.

3. Protecting Minority Shareholders: Alterations that unfairly prejudice minority shareholders or change their rights may be challenged. Courts can invalidate amendments that are deemed unfair or oppressive.

4. Objects Clause: Changes to the objects clause must not exceed the company's original purpose as stated in its memorandum. Alterations to the objects clause require shareholder approval and may necessitate confirmation by the court.

5. Ultra Vires Acts: Any acts beyond the company's legal powers, as defined in its memorandum and articles, are considered ultra vires and are unenforceable. Alterations cannot authorize such acts.

6. Binding Nature: Once altered, the articles become binding on the company and its shareholders. Therefore, changes must be carefully considered to avoid unintended consequences.

7. Procedural Requirements: Companies must follow the correct procedures for amending their articles, as specified in the Companies Act. Failure to comply can render the alterations invalid.

Conclusion:
Altering the articles of association is a significant process that requires careful consideration and adherence to legal requirements. Companies must ensure that any amendments are fair, lawful, and in the best interests of their shareholders.