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legality of business

509 views 1 replies

sameer C

manger Costing and accounts

62 Points Posted on 06 October 2010

hi,

our company want to do trading activity and same was mention under Objective incidental or ancillary to the attainment of main object and not under main object clause of Memorendum of association

Please let me know whether company can do trading activity or changes is require in memorandum of association and bring the trading activity from incidental or ancillary to main object clause.

Replies (1)

SUNIL KUMAR JAIN

PRACTISING COMPANY SECRETARY

187 Points Posted on 07 October 2010

Dear Mr. Sameer,

In case yours is a Private Company, Board of Directors is required to consider the matter and pass a Board Resolution.

On the other hand, if your company is a Public Company you are required to pass a Special Resolution U/s 149(2A) of the Companies Act, 1956 at the AGM /EGM.After passing of Special Resolution ,Form-23 and Form-20A are required to be filed with ROC.Recently I have handled a similar case of a Public Company.

Regards,

Sunil K. Jain, FCS, AICWA, BAL

Practising Company Secretary,

skj13 @ rediffmail.com, 9810104162