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change in object clause

Sowmya.S.Balan (Paid Assistant) (749 Points)

20 February 2010

Change in object clause of the memorandum of association cause change in industrial activity. But name of company not changed.whether it cause any other issues by changing object without change in the name. change is done by adding new object. what is the proceedure for it for doing it without any issues

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5 Replies

Preety (Company Secretary) (96 Points)
Replied 22 February 2010

Hello friends

My Query Is -Mine is a Steel pipe Manufacturing Limited Co. which is reflected in its name. But now we want to start other business stated In other Objects which is investment and dealing in Securities . Pl tell me what is the procedure for the same. Also. do we have to apply for new name. though Co is carrrying its existing main business also of manufacturing steel pipesOr It would be suffice to File Form 23 for Special Resolution and Form 20 A for commencement of new business. Do any alteration in MOA is also required.PL treat it is ver urgent.

Regards

Preety

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 22 February 2010

Preety ji,

You are right.

Just pass Special Resolution and file forms no. 23 and 20A to start new bussiness mentioned in the Other Object. No alteration required.

Preety (Company Secretary) (96 Points)
Replied 22 February 2010

Hello friends

Regards

Preety

Preety (Company Secretary) (96 Points)
Replied 22 February 2010

Thank u so much Mr Ankur. It means I dont have to apply for change in name of the Company.

Regards

Preety

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 22 February 2010

Sowmya Ji,

In your case you are required to pass Special Resolution for change in object clause of MOA and in case of Public company second Special Resolution for commence new business is also required to be passed however, in case of private company board resolution is sufficient to start a new business. File form 23 accordingly.

In your case also change of name is not required.

However, the additional business must not be inconsistent with the existing business. [Re:Bolsom Bros Ltd.]

The business may be wholly different but should be capable of being conveniently and advantageously continued with the existing business.[Industrial Cables (India Ltd. V Registrar of Companies (1973)] otherwise alteration may not be sanctioned for carrying on entirely new business. [Re: Bharat Mining Corporation Ltd].

The company which is not carrying any business cannot alter objects with the object of carrying on its business more economically or more efficiently.