What is the meaning of Objects of the Company?
The main objects of the Company are the boundary or limitation on the activities which a company can undertake. Main Objects will be mentioned in the MOA of the Company. It’s the business activities for which any start-up is established. With the expansion of the area of business the Company may change its main objects
Need for change in the Objects of the Company:
The objects mentioned in the MOA of a company has a great importance, and this clause determines the purpose of the company. The objective of the company as drafted in the object clause is a boundary of its operation regarding what activities the company can perform. Any act of the company beyond what is mentioned or part of the object clause is ultra vires and thus void. To change the object clause of the MOA, the company shall follow procedure mentioned in AOA and Companies Act, 2013
Steps Involved for Change in Objects of the Company:
Step-1: Convene the Meeting of Board of Directors of the Company:
To decide on proposed new objects of the Company. Preparation of Board Meeting notice, agenda and convene the board meeting to approve the object change. Issue the notice to the shareholders to convene an Extraordinary General Meeting
Step-2: Convene an Extraordinary General Meeting (EGM) of Shareholders:
The next step is to seek approval of the shareholders of the company. Pass special resolution in this regard at duly convened Extraordinary General Meeting (EGM) of Shareholders for change in the objects of the Company.
Step-3: Filing of Special Resolution to RoC in Form-MGT-14:
Once the special resolution has been passed for change of objects of the Company. Form MGT-14 has to be filed within 30 days of passing of the Special resolution with Certified Copy of Special resolution, altered MOA and any other attachments if any. After the satisfaction of ROC, Certificate of registration of special resolution for alteration of objects will be issued.
Documents Required for Object Change:
- List of directors and shareholders of the Company.
- Proposed new main objects of the Company.
- Existing MOA and AOA of the Company.
- Digital Signature (DSC) of any one of the Director of the Company