Change in Company Object Clause

Our team of qualified company secretary will look after this process and will guide you from giving notice of board meeting to getting fresh certificate of incorporation. All the process will be accomplished keeping in mind the rules and regulations of companies act. Feel free to ask more queries.

Brief about object clause of Company

The company is incorporated with a particular object. The object defines the area of activity of company. After incorporation, if company wishes to alter the object with which it was originally incorporated, then they can do so by following prescribed procedure under companies act. Changes in object clause requires alteration in companies main charter documents “Memorandum of Association”. The MOA contains the clause related to object of company.

What do we mean by object?

Object can be defined as an fundamental activity for which company is being incorporated. There are two kinds of object.

1) Main object i.e. primary activity of company

2) Ancillary object which is necessary to conduct the main object

Procedure to change or alter object clause of company

1) Holding the board meeting: The first ever step in altering the object clause is to get the consent of board of directors by holding a board meeting and passing the resolution consenting the alteration in object clause and appointing one director to authorize every forms required to carry out this process. In the board meetings, members of boards decides the time place and date of extra ordinary general meeting to be called next for getting approval of members.

2) Hold the EOGM: For alteration of object clause it is compulsory to acquire the consent of members through AGM if coming in near future or by conducting EOGM. The company needs to pass special resolution in EOGM seeking the consent of members to alter the object clause of company.

3) File form MGT-14: Within 30 days of passing special resolution, company needs to file form MGT-14 intimating the special resolution passed by company to concerned ROC.

4) Issuance of fresh certificate of incorporation: On examining the form MGT-14, If ROC finds it correct in all respect than it will issue fresh certificate of incorporation.

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FAQS

What is object?
Object can be defined as an fundamental activity for which company is being incorporated. There are two kinds of object. 1) Main object i.e. primary activity of company 2) Ancillary object which is necessary to conduct the main object
What is EOGM?
EOGM stands for extra Ordinary General Meeting. An extraordinary general meeting (EGM) is a shareholder meeting called other than a company’s scheduled annual general meeting (AGM). It can be called to carry out special and emergency tasks which requires member’s approval.
What is the time limit to file form MGT-14?
MGT-14 needs to be filed within 30 days of passing special resolution.
What is MOA?
A Memorandum of Association (MOA) is a charter document prepared while incorporating company which define its relationship with shareholders and various clauses that holds an important position for company. One that clauses is an object clause.
What are the attachment of form MGT-14
1) Certified True Copies of the Special Resolutions along with explanatory statement; 2) Copy of the Notice of meeting send to members along with all the annexure; 3) A printed copy of the Memorandum Article of Associations. 4) Copy of Attendance Sheet of General Meeting. 5) Shorter Notice Consent, if any.
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