What is the purpose of Objective Clause Change?

At times, businesses may need to change their goals, aims or objectives. For this, you need to amend the Memorandum of Association as it contains the object clause. The director or company secretary is supposed to file MGT-14 with the ROC to get approval for new business objective.

Is it necessary for the partners to have a DSC?

Yes, for filing the application your DSC will be required. The application will have to be signed by the director or company secretary of the company for which their digital signatures will be used.

What if the company has raised funds from the Public?

In case the company has raised funds by issue of prospectus or have some unutilized funds then it needs to disclose the details along with the passing of a special resolution.

What are the documents to be attached with MGT-14?

Along with MGT-14 scanned copies of the following documents are to be submitted -

• Certified copy of the special resolution
• Notice of Extra Ordinary general Meeting (EGM)
• Explanatory statement for objective clause change
• Altered Memorandum of Association

What role does the members of the company play in object change?

All the members of the company must give their consent for the change of object clause of the business. For the shareholders who do not agree to objective change can have the chance to exit.

How soon the ROC issues new certificate?

The Registrar will issue new incorporation certificate based on revised objectives of the business within 30 days from the date of filing of the Special Resolution.