Change in Company Object Clause
Brief about object clause 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
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
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.
MGT-14 needs to be filed within 30 days of passing special resolution.
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.
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.