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Object clause of memorandum

BIJAY KUMAR (CA) (133 Points)

26 December 2012

First of all warm wishing to all of you sir for a happy Christmas...

The followings are my concerns regarding classification of Object clause of MOA.

1.When do we classify a object as main or ancillary or as other object ?

2.What is the logic behind such classification?

3.Can we start any business mentioned in ancillary or Other objects normally, with out any legal formalities...as we do under main objects?

4.If no legal formality required,then why such classification.?(i.e. Literally objects under 3 category are same)

5.How it is governed by law and under which provision?

Thank you in advance for your prompt reply...

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4 Replies

Shridhi Jain (Company Secretary) (1678 Points)
Replied 26 December 2012

You can only pursue the objects mentioned in main objects. For pursuing any other activity, you need to make it your main objects for which you have to change the objects clause. Rest objects are the objects that a company can opt for its business. They are mentioned so as to determine the activities that a company can enter into, in future. It means that the company is not debarred from doing or opting for any other business as mentioned in MOA, subject to the necessary compaliance.

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Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 26 December 2012

You may read section 149 of the Act 1956 for guidance and appropriate relief.

Regards,

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BIJAY KUMAR (CA) (133 Points)
Replied 26 December 2012

Originally posted by : Dipjyoti Majumdar
	You may read section 149 of the Act 1956 for guidance and appropriate relief. Regards,

Dear,

Section-149 is not applicable to private company...let one of my proposed business is stated under Others Objective catagory of MOA...Now m planning to start it now....what are the formality ...i have to comply...please note i am not altering my MOA...m just adopt a business,which is already stated in Other Objective

Thank you

BIJAY KUMAR (CA) (133 Points)
Replied 26 December 2012

Originally posted by : Shridhi Jain
	You can only pursue the objects mentioned in main objects. For pursuing any other activity, you need to make it your main objects for which you have to change the objects clause. Rest objects are the objects that a company can opt for its business. They are mentioned so as to determine the activities that a company can enter into, in future. It means that the company is not debarred from doing or opting for any other business as mentioned in MOA, subject to the necessary compaliance.

So as per your opinion,pratically its has no consequences..I have to do same compliances either i start a complete new business or persue a business stated in other object...

I think...it is not an alternation of MOA ,when m planning to start a business stated in Other objects...It is an adoption of Other Objects...

Since my client is a private concern...we can start the proposed business stated in other object by merely passing a board ressolution because sec 149 is not applicable.

Please correct me...