{"id":11741,"date":"2020-04-14T04:19:27","date_gmt":"2020-04-14T04:19:27","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=11741"},"modified":"2024-06-04T12:23:37","modified_gmt":"2024-06-04T06:53:37","slug":"procedure-for-alteration-of-object-clause-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/procedure-for-alteration-of-object-clause-under-companies-act-2013\/","title":{"rendered":"Procedure for Alteration of Object Clause Under Companies Act, 2013"},"content":{"rendered":"<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"padding: 10px;\">\n<p style=\"text-align: justify;\"><strong>Table of Content<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#steps\">Steps for Alteration in object Clause of Memorandum of Association<\/a><\/li>\n<li><a href=\"#restrict\">Restriction Regarding the Alteration in the Object Clause of the Company<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\">The Section \u2013 13 read with rule 29 of Companies (Incorporation) Rules, 2014 deals with the alteration of object clause of Memorandum of Association of the Company.<\/p>\n<p style=\"text-align: justify;\">This Article contains the procedure for change in Object clause of the Company The <a href=\"https:\/\/cleartax.in\/s\/memorandum-of-association-moa#:~:text=A%20Memorandum%20of%20Association%20(MoA,the%20company%20has%20been%20formed.\" target=\"_blank\" rel=\"noopener\">Memorandum of association of a Company<\/a> is the charter document which defines the scope of the activities a Company can perform during its life. It defines the rights of the members of the company&#8217;s interest &amp; also establishes the relationship of a Company with its members.<\/p>\n<p style=\"text-align: justify;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-15391 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-768x403.png 768w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Procedure-for-Alteration-of-Object-Clause-Under-Companies-Act-2013-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\">The Memorandum of Association (MOA) of a Company has namely:-<\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name Clause<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Situation Clause<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Object Clause<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Capital Clause<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nomination Clause<\/span><\/li>\n<\/ul>\n<p id=\"steps\" style=\"text-align: justify;\">Here we will study the process of for altering the object clause of Memorandum of Association.<\/p>\n<p style=\"text-align: justify;\">Object Clauses is the Clause which determines the purpose and range of activities of a Company which it can undertake during its life time . A Company in order to expand after incorporation of a Company may change the object clause. A Company can alter its object clause either by way of addition, deletion, substitution, modification or in any other way, only if it wants.<\/p>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Steps for Alteration in object Clause of Memorandum of Association<\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Holding a Board Meeting in accordance with section 173 and Secretarial Standard-1 and passing of necessary Board Resolution for alteration of object clause by proposing the new Objects of the Company subject to approval of Members of the Company;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Convening of an <a href=\"https:\/\/www.cagmc.com\/extraordinary-general-meeting-under-companies-act-2013\/\">Extra Ordinary General Meeting<\/a> of the Company for according the approval of Members of the Company for altering of object clause by way of an Special Resolution along with the explanatory statement in accordance with the Articles of Association, Section 101 and 102 of the Companies Act, 2013.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Alterations to be made in the Memorandum of the Association of the Company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Filing of E-form &#8211; MGT-14 as per Section 117 within 30 days from passing the Special Resolution along with the following attachments with the requisite fees:<\/span>\n<ul>\n<li id=\"restrict\" style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Certified True Copies of the Special Resolutions along with explanatory statement;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A printed copy of the altered Memorandum of Association;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shorter Notice Consent if any<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Once the above process is completed the Registrar shall register the alteration and issue a Certificate serving as a conclusive evidence that all the requirements have been duly complied with by the Company.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Restriction Regarding the Alteration in the Object Clause of the Company<\/h3>\n<p style=\"text-align: justify;\">As per Section 13(8) of the Companies Act 2013 read with rule 32 of the Companies (Incorporation) Rules, 2014\u00a0 a Company which has raised funds through public prospectus shall cannot make any alteration to its Memorandum if it still has any unutilized amount of money so raised unless a Special Resolution has been to that effect by the Company and-<\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of such resolution shall also be required to e published in one English newspaper and one in vernacular language where the Registered Office of the Company is situated and shall also be placed at the website of the Company if any indicating the reason of change;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">if the Company receives any dissent from any of the Members of the Company then they shall be given an opportunity of being heard to exit by the promoters &amp; shareholders having control as per the regulations to be specified by the SEBI.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Special Resolution if required in the above mentioned case shall be passed through postal ballot in accordance with Rule 32 of the Companies(Incorporation) Rules, 2014.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">While drafting the Notice for the Extra Ordinary General Meeting for the above mentioned case for altering the objects of the Company the same shall contain the following particulars:-<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Money received in total;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Money utilized for the objects stated in the prospectus;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">unutilized amount remaining from the stated prospectus;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Alterations made in the object clause;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Justification for the alterations so made;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Amount to be utilized for the new objects;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Estimated impact of the alterations on the Company&#8217;s earnings and cash flows;<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">place from where an interested person can obtain the copy of the notice of Special Resolution.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">any other relevant information;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Table of Content Steps for Alteration in object Clause of Memorandum of Association Restriction Regarding the Alteration in the Object [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":15391,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[70],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Procedure for Alteration of Object Clause Under Companies Act 2013<\/title>\n<meta name=\"description\" content=\"Procedure for Alteration of Object Clause Under Companies Act, 2013. 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