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Sole proprietorship take over by a company

Indranil (Chartered Accountant) (177 Points)

16 April 2012

Dear Friends,

In case a newly formed Pvt Ltd company wants to take over an existing sole proprietorship concern, do we have to insert this in the object clause that it will take over such concern?

Do we have to insert it anywhere else in the MOA & AOA.

Regards

Indranil Das

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4 Replies

Manjul Soni. (CA Student.) (1407 Points)
Replied 16 April 2012

Takeover of Sole prpreitorship
is regular business activity
or
it is a Competitive move Of Company to grow its market ?
...........
...........
if it is A Competitive Move,
Then there is no need of TAking it in Objective Clause ..........

If it is Regualr activity
then i have No idea..........

Its My View....

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 17 April 2012

If the company is formed only for taking over the business of the sole proprietorship then definitely it is to be menitoned in the MOA in the Main objects (preferably the last point of main objects).

You have to draft Main objects as per the field of business and then add one more point of takeover in the last.

Thanks.

Shridhi Jain (Company Secretary) (1678 Points)
Replied 17 April 2012

If the company is formed only for taking over the business of the sole proprietorship then definitely it is to be menitoned in the MOA in the Main objects (preferably the last point of main objects). You have to draft Main objects as per the field of business and then add one more point of takeover in the last.