Change in Business Activity
Why Choose Dastawezz ?
The business activity of a company is defined in its Memorandum of Association (MOA). In order to alter such activity, it is necessary to amend the object clause in the MOA. It must be noted that a Company cannot conduct any business activity which is not mentioned in the object clause of the MOA.
- Notice: the board of directors must decide a date and time to conduct an Extraordinary General Meeting, in order to take approval of the shareholders regarding the amendment. The noticefor the EGM must be sent to all the shareholders at least before clear 21 days from the date of such meeting.
- Special Resolution: In the Extraordinary General Meeting shareholders must give assent to and pass a Special resolution which will give effect to the amendment to the object clause of the MOA.
- Intimating the Ministry of Corporate Affairs: The MCA must be communicated about the new altered Memorandum of Association of the company. It is mandatory to seek the central government’s approval via filing form MGT-14, within 30 days of the passing of the Special resolution.
- Alteration in MOA: upon receiving approval from the Ministry of Corporate Affairs, the company must amend all copies of the MOA.
ADVANTAGES / FEATURES
- A Company cannot conduct any business activity which is not mentioned in the object clause of the MOA.
- It is mandatory to give effect to any expansion or diversification
- It is key to the growth of the company
- A true copy of a board resolution
- Notice of Extraordinary General Meeting
- A true copy of a special resolution
- Amended Memorandum of Association