Change in Object Clause of the Company
Procedure for changing object clause in MOA
Any business carried on by the company should be stated in the memorandum of association hence the business activities not mentioned in the object clause of the memorandum shall be ultra vires and therefore, void.
ALTERATION IN THE OBJECT CLAUSE
A company can alter its object clause by way of addition, deletion, modification or in any other way.
PROCEDURE FOR CHANGING OBJECTS OF A COMPANY
STEP 1. Issue notice to every director at his registered address as per provision of section 173 of the Companies Act.
STEP 2. Hold board meeting at the appointed time, date and venue to;
Consider and pass resolution approving the proposed amendments to the object clause of the memorandum of association of the company
Fix date, time and venue of the general meeting for passing special resolution for change of object clause of the company.
Approve notice of the general meeting and annexed explanatory statement with the notice
Authorize Director or company secretary or some other authority to issue the notice on behalf of the board.
STEP 3. Issue notice of the general meeting along with explanatory statement to all the members of the company, directors and auditors.
STEP 4. Hold the general meeting and pass the proposed special resolution.