The business objectives of the company are defined in the main object clause of MoA. The scope of the company’s principal business activities are defined under these objectives within which it may operate. A company cannot undertake those activities, which are not described under in its object clause.
In any case, no company can act against the provisions of its Memorandum, and if it does so, such transaction will be ultra vires and hence void. If the company wants to expand its business or make strategic changes, a company may require to undertake new activities or update business activity in MoA. So, if the company wants to make changes in object clause of MoA it is possible only by passing special resolution after consent of shareholders and the approval from Ministry of Corporate Affairs.
The process to amend the Object Clause of Company’s MOA for change in business activity are as follows:
- Hold The Board Meeting
- Conduct EGM
- ROC Filling
- Approval By ROC