Change in Objective Clause: Know The Procedure For This Change

1. Change in Objective Clause: Know The Procedure For This Change The memorandum of association (MOA) of any company is formed before the official formation of the company. When the MOA is written and registered, the information in MOA is fixed. It cannot be changed without the permission of the RoC. MOA contains the most important information about the company. This information is segmented into several parts known as clauses such as name clause, registered office clause, objects clause, liability clause, capital clause, and association clause. You can change the clauses including the change in object clause as per the legal procedures mentioned in the Companies Act 2013. What is an object clause? Object clause or objective clause is the most vital part of MOA. It explains why the company is established – the purpose of the company. Once MOA is registered, the company cannot do any other business apart from what is written in this part of the MOA. A typical object clause contains:  The list of the main objects of the company after the incorporation of the company. The list of the incidental objects of the company that are necessary to pursue the main objects. Exceptional objects that the company can pursue sometimes that are not mentioned in the main and incidental objects.   The object clause should be as per the Companies Act 2013 and any other act in force in the domain where the company is going to do business. For example, if the company is a financial company, then apart from the Companies Act, it will be regulated by the RBI Act and SEBI Act.

2. The object clause should not contain:    Anything illegal according to any law of the land. Anything that the Central and State Governments don’t allow. Anything that would be against the public interest or will be harmful to society. Change in the object clause Any change in the object clause is illegal without the permission of RoC. The change to be done should be as per Section 13 of the Companies Act 2013. This change or change in any other clause is known as an alternation to MOA. This section applies to all types of companies doing business in India irrespective of their nature of businesses. For a change in objective clause:  The board of directors needs to convene a meeting with the directors and pass a resolution accordingly. The board of directors then need to convene a general meeting of shareholders (if applicable). The resolution of the board of directors is to be published on the website within 24 hours of passing the resolution.   Several other intricate procedures and documentation are needed while applying for the change in objective clause. uCompaly is an expert consultant in this domain. They can make the procedure rather smooth sailing for your business.