Friday, 17 April 2015

Change the object clause of your company in easy steps

Procedure for change in Object clause of the Company

An object clause in company states the purpose or range of the activities carried on by the Company. Change in Object clause of the Company involves alteration of Memorandum of Association of the Company. For change in object clause, consent of members is required by passing Special Resolution.
Secretarial procedure for alteration in object clause is given below:
1.     Calling of Board Meeting: Issue notice for Board meeting, In this board meeting following things to be done:
·          Get Approval of Director  for change I object clause of Memorandum
·         Fix day, time & date for Extraordinary general meeting for getting approval from shareholders by passing Special Resolution.
·         Approve notice of Extraordinary General Meeting with agenda or explanatory statement.
·         authorise the Director or Company Secretary to issue Notice of the Extra-ordinary General meeting
2.     Holding of Extraordinary General Meeting: Pass Special Resolution in General Meeting on due date.
3.     ROC Form filing: Company is required to file Special Resolution passed by shareholders for alteration of Memorandum with concerned Registrar of Companies in prescribed form within 30 days of passing special resolution.( attached  Notice of General Meeting, Special Resolution, Altered Memorandum, Board Resolution with it).
4.     The Registrar shall register any alteration of the Memorandum with respect to the objects of the company and certify the registration within a period of thirty days from the date of filing of the Special Resolution

Small Restriction regarding Change in object clause of Memorandum

Company cannot change its object clause unless company pass the special resolution regarding following thing:
1.     Prescribed details in respect of such resolution shall also be published in the newspapers (one in English and one in vernacular language) which is in circulation at the place where the registered office of the company is situated and shall also be placed on the website of the company, if any, indicating therein the justification for such change;  
2.     The dissenting shareholders shall be given an opportunity to exit by the promoters and shareholders having control in accordance with regulations to be specified by the Securities and Exchange Board.  

Documents Required
-          Altered Memorandum of Association
-          Board Resolution
-          Special Resolution
-          Notice of General Meeting along with Explanatory Statement
*Please take note that when there is a change in the objects Clause of a One Person Company, there is no need to hold General meeting as there is only one shareholder in OPC.


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