The objects clause mentioned in the company’s MOA determines the purpose and scope of activities for which the company operates. At the time of company registration process, the shareholders decide the objects for which the company is formed. If there are changes to be made to the objects during the course of operations, shareholder approval and MCA approval would be required. In the article, we look at the procedure for changing objects clause of a company.
Board Meeting: First the board should approve the alteration in the object clause related with Memorandum of the company.
Call EGM: For shareholder approval call the EGM and pass a special resolution for alteration of the object clause.
Agenda: To render support to make notice of EGM all together with Agenda in addition to Explanatory Statement to be suitable as per the notice of General Meeting according to section 102(1) related to the Companies Act, 2013.
EGM: Present Notice of the Extra-ordinary General Meeting (EGM) to all Members, Directors as well as the Auditors of the company in agreement with the provisions as per Section 101 of the Companies Act, 2013.
File the Form: Final forms file to ROC for final approval from MCA file the special resolution passed by shareholders for amendment of Memorandum with the related Registrar of Companies. Changes to MOA objects clause must be filed using form MGT-14 within 30 days of the passing of Special Resolution along with the approved fees and the following attachments
Approval for change: After submission of the forms the ROC will issue certificate for change the object clause successfully.
In future the company start the business in new field than first object clause should be change.
Yes, the special resolution should be pass by shareholder for proposed amendment in object clause.
No, the central Government approval is not required.
The object clause of the company described in the MOA of the company.