Takeover of Proprietory Business by Company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2010 Dear Friends

I have a existing pvt. co. having two directors which is persuing to takeover the proprietory firm which is owned by one of the director of the Company. Please let me know how can i takeover the proprietory firm. Whats the procedure?
Will i have to alter the MOA of the Company by passing special resl. adding to main object clause the clause of takeover of proprietory firm (Name) alongwith its assets and liabilities.

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

07 December 2010 You can do that. However make sure that the proprietorship concern is carrying on the same line of business as that of yours which is covered in your object clause. If not, modify your object clause of MOA
1)to incorporate the business activity carried on by the proprietorship concern; and
2) taking over the proprietory conern with its assets and liabilities.