Company Object Change
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Change in Object clause of the Company involves Alteration of Memorandum of Association of the Company. Section 13 of Companies Act 2013 regulates the process of amendment in the Memorandum of Association and is applicable to all Companies.
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Introduction
Change in Object Clause
The object clause of the company states the purpose of the incorporation of the company. In case, if a company aspires to change the object after its incorporation, then it needs to amend its (MOA) as per the Companies Act, 2013.
The third clause in the memorandum of any company is the object clause. The object clause states the objects or specifies the business’s purpose for the incorporation of the company and any other matter that is necessary for furtherance thereof. Any act that is done by the company that is beyond the objects and powers. As per Companies Act, 2013, the object clause is one of the most important provisions. While getting a company registered, the subscribers decide upon the objects of the company. They can do so by following all the required legal procedures under Section 13 of the Companies Act read with the Companies (Incorporation) Rules, 2014.
Package Inclusions:-
- Audited Balance Sheet
- Audited Profit & loss account
- Audited Financial Statement
- Company ITR filing
- ROC forms (Annual Filing)
Benefits
Points to make your decision easy
Diversification
Modifying the object clause enables a company to diversify its business activities and enter new markets, which can increase revenue and profitability.
Legal Compliance
Changing the object clause can help a company remain compliant with changing regulations and stay competitive in the market.
Increased Flexibility
A revised object clause provides a company with greater flexibility to adapt to changing market conditions and business needs.
Attracting Investors
A revised object clause can attract new investors who are interested in the company's expanded business activities.
Improved Image
Modifying the object clause can enhance a company's reputation and credibility, as it reflects the company's ability to evolve and innovate.
Better Utilization of Resources
A modified object clause can help a company make better use of its resources and assets by aligning them with the new business activities.
Process
Company Object Change In Easy Steps
Document Checklist
Documents required to Company Object Change
The special resolution
Copy of the special resolution passed by the shareholders.
The Memorandum of Association
Copy of the Memorandum of Association.
The Board Resolution
Copy of the Board Resolution authorizing the filing of the necessary documents with the Registrar of Companies.
The revised Memorandum of Association
Copy of the revised Memorandum of Association.
Faq
Frequently Asked Questions (FAQ)
New E-form 33 is an online SPICe form for MOA of the company which is filed while integrating the Company with SPICe 32 and SPICe 34. Therefore the Company needs not to submit this online form again with form MGT-14 for certification of alteration. Having a physical copy of MOA along with MGT-14 will be enough.
Following key-points to be remembered: Company is permitted to subscribe through an agent Minor cannot sign the subscription sheet in MOA and shall be signed by a guardian who is acting on his behalf. It is upon the discretion of the Company to add any further additional points other than those mentioned provisions.
In case the Company decides to alter its object clause is a Public Limited company, shall follow these additional points as well: Special Resolution passed shall be published in the newspaper (English & Vernacular language) Such a newspaper must be in wide circulation is that state where the registered office of the Company has to be situated. The Company shall also place such information relating to MOA alteration on its website. Dissenting shareholders who don't agree to the alteration of the Object clause shall be given an exit option.
Earlier object clause consisted of 5 clauses that are now deleted under Companies Act 2013. In new online form SPICe 33 for MOA, only two object clause persist, such as Main Objects; and Ancillary Objects.
Every clause in an MOA can be alerted. The capital clause is the only exception where an ordinary resolution needs to be passed for passing an ordinary resolution. The object clause can be altered by passing a special resolution as per Section 13 of the Companies Act.
• Step1: Pass Board Resolution.
• Step 2: Special Resolution in the EGM.
• Step 3: MGT-14 to be filed with ROC.
• Step 4: Issuance of fresh certificate of incorporation.
• Step 5: Incorporating Object Clause in MOA and AOA.
The object clause of a company is the third clause in a memorandum of association of any business stating the objects i.e., the business or purpose for the company's incorporation and any other matter that is considered necessary in furtherance thereof.
