Change in Objects (Business Activity)
In short
To change its business activity, a company alters the object clause of its MoA under Section 13 of the Companies Act, 2013. This needs a board resolution, a special resolution of shareholders and the filing of Form MGT-14 with the ROC within 30 days. The change takes effect once registered by the ROC.
Overview
If your business has moved into new activities, the object clause should reflect it. Banks, regulators and counterparties may check the MoA to confirm the company is permitted to carry on an activity.
Key requirements
- Board approval
- Special resolution of shareholders
Documents required
- Board resolution
- Notice of general meeting with explanatory statement
- Special resolution
- Altered MoA
We share an exact checklist for your case before you start, since requirements vary with the structure and the people involved.
Process
Draft
We draft the new object clause.
Approve
Board and shareholder resolutions are passed.
File
Form MGT-14 is filed within 30 days.
What KNAP Advisory handles
- Drafting the new object clause
- Resolutions and notices
- MGT-14 filing
Frequently asked questions
Does changing the objects require a new name?
Not usually. However, if the name reflects the old activity, a name change may also be needed.