Change Objects of a Company

The objects clause in the Memorandum of Association of the company defines the main business activities of the company. It indicates the purpose for which the company has been set up and its actual capability. The object clause determines the permitted range of business activities the company can deal with individuals and entities.

A company willing to change its business activities can do so by altering the objects clause of the Memorandum of Association the company by holding a general meeting and pass the required resolution and file a certified copy of the resolution with the Registrar of Companies. The major provisions pertaining to alteration of Memorandum are provided in Section 13 of the Companies Act, 2013 read with Companies (Incorporation) Rules, 2014.

Highlights of Changing Objects

The change in objects requires the prior mandate of the Board of directors of the company along with a special resolution.

The change in objects of the company shall be effective only after registration of special resolution with the Registrar of Companies.

Any provision contained in the Memorandum of Association shall, to the extent to which it is repugnant to the provisions of Companies Act, 2013, become or be void.

Procedure To Change Objects Of Company

1 BOARD MEETING

Hold the board meeting and pass resolution for approving amendments to the objects clause of the MOA of the company

2 NOTICE

Issue notice of the general meeting to all the members of the company, its directors and the auditors.

3 GENERAL MEETING

Hold the general meeting and Pass a special resolution for amending the object clause of the MOA.

4 FILING

Signing and Filling various documents including amended copy of MOA in respective E-forms with Registrar of Companies