Change in Object Clause
Sometimes companies wishes to diversify the business or change the business activity, for this purpose change in object clause of Memorandum of association is required. Intimation to the government along with altered memorandum of association is a mandatory compliance.
Change in object clause of the company requires calling board meeting, passing of special resolution, alternation of memorandum of association and filing of application with Ministry of corporate affairs. Filing of necessary forms and supporting documents including altered memorandum of articles is an important aspect and requires expert support and professional guidance.
We at TaxMuneem take care of all your needs by providing personal supervision to compile forms and supporting documents.
Preparation of Altered Memorandum of Association
Preparation of Minutes of the Board and Members’ meetings.
Filing of application with Ministry of corporate affairs along with fee.
Any additional fees payable in case of the original application is rejected.
Penalty amount for non-compliance.
true copy of Special Resolution
Copy of Board Resolution
Notice related to AGM
Optional Attachments
Any other information required.
2-3 weeks for filing and processing of application.
FAQ
The Object clause is one of the clause as contained in the Memorandum of Association. It consists of 2 Objects i.e. Main Objects and Other Objects.
The object Clause enables the shareholders, creditors and others to know about the powers of the company and what is the range of its activities.
No, the company cannot start a business if there is no object clause in the Memorandum of Association. Therefore, the company shall be required to first alter the Memorandum in order include the Object Clause to conduct the Business.
The following procedures will be followed for the alteration of the Object Clause of the Memorandum of Association:-
- Holding of the Board Meeting for the purpose of convening the Meeting of the members for approving the alteration in the Memorandum of Association.
- The Memorandum of Association shall be altered by passing a Special Resolution
- The Special Resolution shall be filed with the Registrar of Companies.
- Registration of Alteration with the Registrar shall be made by the company. The Registrar shall within 1 month from the date of filing the Resolution along with the printed copy of the Memorandum.
Section 450 shall apply in this case. Accordingly, if the person or any officer of the company or any person contravenes with the provision of this Section, then, the company and every officer in default or any such person shall be punishable with a fine which may extend to Rs. 10,000/- and Rs. 1,000/- for every day during which the default continues.
