19 November 2008
The company is a IT Company. Main Business activity is computer hardware / software trading . Now it wants to trade in shares / stocks/ derivatives.
Please advice :
01. whether we have to make amendments in the main objectives in the MOA . Or, 02. According to clause no.12 &13 of ancillary / incidental to main objects & clause no.24 of other objects (where it has been mentioned that the company can buy,sell, deal in shares, stocks, securities etc.), without any amendments in the MOA we can do this type of business.
Further I just want to know what is difference between main objectives, ancilary/incidental objects & other objects in a MOA.
20 November 2008
You need to amend the main objects of Memorandum of Association in case you are going to take up this activity as one of the main objects.
The clause in the Ancilliary objects enables a company to deal in shares not being its main activity.
Main objects are the ones that enables you to pursue your main activity such as dealing in securities, Investments etc., Anciliary to the objects are the ones which enables you to carry on the things that you may require to do in the course of business to enable you to attain the main objects.
Other objects are those which you can keep in store for future and as and when you feel like starting any particular business mentioned in the main objects, you may start the same by following certain formalities prescribed under the Act.
CAclubindia
