If you feel like your #business's #objectives need a change, then watch this video to understand the process involved in changing a #company's objectives.
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Change of objectives:
When the company is incorporated, the important documents that the company will hold is this Incorporation certificate, the Memorandum of Association (MOA) and the Articles of Association (AOA). Now the Memorandum of Association includes the object clause of the company.
What is an object clause?
The object clause states see the provision and the activities for which the business is carried down. Now the company may want to change its objectives or add additional objects to the business. Now for this, the company will have to follow a certain procedure and the procedures as follows.
Now the first step the company will have to do is pass a border resolution and the board meeting to get the approval of the board of directors and for this, prior notice should be given to the board of directors seven days before the board meeting. And this will also include the agenda of the board meeting.
The second thing the company will have to do is convene an extraordinary general meeting. Now, this is done to get the approval of the shareholders. Now for this, the shareholders will be given a 21-day prior notice including the agenda of the AGM. Now once the approval of the shareholders has been given this special resolution is filed with the MCA in the form called MGT 14. Now, this form has to be filed within 30 days from the date on which the special resolution has been passed. Now, this form will include the altered MOA and the notice of the meeting, the declaration document and the copy of the minutes.
What is this declaration document.?
The declaration document is the declaration given by the director stating that no deposit or money has been raised for the existing objective and should not accept any deposit unless the compliance with the applicable provision with the applicable law has duly complied.
Now MGT 14 is a non-SDP form. So we even have to wait for the MCA approval. This might take even 7 to 14 days or even more than that. Now the company cannot run the business with the changed objectives until the MCA approval is there. If the company does so then it will have to pay the penalty. Now once the MCA approval is being given to the company, the company can run the business with the changed objectives. Now, this is all the company will have to do for changing the objectives of the business.
We Vakilsearch the house of experts will help to do this in a better way. I hope this information given today was useful to you.
