Amendment in object clause

Page no : 2

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 03 September 2010

Originally posted by : Neha Gupta
	Ankur Sir one more thing I would like to ask, as per Neeta ji the company is entering into one new business of SOLER BATTRIES which is absolutely different from its earlier business of Garments, Is it necessary all the time that company change its name as well, so that it reflects its purpose more clear like words "Enterprises" etc. Or other multy tasking words should be added in the name of Company. And we have to follow the procedure of “Change name also” along with the procedure of “Change main Objects”

As far as above query of Ms. Neha is concern.

Her doubt is valid one. However, in this case the Company is carrying on its garment activity and also want to induct itself in solar batteries segment. In this case there is no need to mandatorily change the name. However, if the company changes its main activity then it need to change the name also.

However, it is a good practice to change the name also wihich will reflect and cover all the activities of the company but when we deal with the management, they asks whether it is necessary to change the name and generally management hesitate and avoid the change in name because they have generated valuable goodwill on their name.

The word Industries etc. may be used by the Company but for this the Capital is also required to be changed.

The Company may start wholly different business but the business should be capable of being conveniently and advantageously continued with the existing business. [Industrial Cables(India)Ltd.]. Otherwise alteration may not be sanctioned for carrying on entirely new business [Bharat Mining Corporation Ltd.].

However, a Company which is not carrying any business cannot alter its objects.

Therefore, my view is, the company is not mandatorily required to change the name.

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Neha Gupta (PCS) (377 Points)
Replied 03 September 2010

Thanks for such informative reply Ankur Sir

RAJEEV SAXENA (Vice President) (30 Points)
Replied 20 August 2014

An existing Company who is into Import & Export business, wants to do construction activity in addition to the existing business. As I understand, we need to amend the MOA of the Company. Can we keep 2 different objects under Main Objects and there is no need to amend the name of the company.