Memorandum of Association of a company defines its relation with the outside world along with the scope of activities. The main purpose of MOA is to provide fundamental conditions on which the company is incorporated under the current companies act.
Object clause in companies MOA defines the business activity of the company. The main object is listed in the board resolution.
The objects clause for companies registered under companies act 2013 should classify follows:
The object clause states the extent of the companies power and authority, to protect the stakeholders and will tell them about the investment of their money in the companies object. The object of the company shall not be contrary to the laws of the companies act.
Mostly the main object of the company is listed in the first paragraph of the object clause the rest are considered the only ancillary to the main object.
The following process is followed to change the object clause in MOA:
The first step in changing or altering the Object clause in MOA is to convene board meeting of the director for which a notice is to be issued by the chairman of the company and if there is no chairman then in that case either by a company secretary or by any director of the company.
The Board meeting should be initiated with the following in mind:
Once the Extraordinary general meeting is initiated on the time and place mentioned in the notice of the meeting; the special resolution for the change in the object of the company. For approving special changes in the EGM a ballot should be conducted.
NOTE: The meeting should be convened within 7 days of the notice filed.
Once the necessary special resolution is passed in the EGM the approval for the same is to be obtained by special resolution with form MGT-14 with MCA within 30 days of the passing of the resolution.
Following attachment are to be filed with MGT-14:
The registrar will then examine the form MGT-14 and register the changes in the object clause and issue fresh Certificate of incorporation.