Change In Object Clause

What Is Memorandum Of Association Or MOA

Memorandum of Association is an abbreviation of MOA. MOA of Company is the base of any company which is being registered. It is believed that MOA is the constitution of the Company and also it defines the scope of rights and responsibilities within which the business operates. Provisions of Law dominate in case there is any dispute between the Clauses in Memorandum and Companies Act.

Objects are the part of MOA or Memorandum of Association which defines the objectives and aim of the Company for which it is being incorporated. The Company should operate only within the object clause and it should not operate beyond the objects. In any situation, the company cannot act against the provisos of its Memorandum of Association, and if it acts so, such business dealing or transaction will be ultra vires and therefore void. Say, for instance, if the Company admits into a contract, any business dealings or agreement with any third party, the Memorandum of the company is used as a public document.

Memorandum of Association or MOA must be drafted following the format prescribed in Table A-F of schedule I of Companies Act 2013. As per the Table, the company can use depending upon its status or business type such as:

Tables

MOA of the companies

Table A

Companies limited by shares.

Table B

Companies limited by guarantee and have no share capital.

Table C

Companies limited by guarantee but have share capital.

Table D

Unlimited Companies.

Table E

Unlimited Companies and having a share capital..

Contents Included In The Moa Of The Company

Memorandum of Association or MOA of the Company comprises of the following clauses:

Name Clause

This is the first clause drafted in every MOA and it shall mention the name of the Company along with the last word as  Limited, OPC Private Limited, Private Limited and so on based upon the type of Company. This type of requirement needs not to be satisfied with Section 8 Company.

Registered Address Clause

It is the clause that states the name of the state in which the location the Company is registered.

Object Clause

It mentions the objects for which the Company is registered.

Liability Clause

It states the unlimited or limited liability of the members of the company.

Capital Clause

This is the last clause of the MOA which mentions the Capital investment of the Company. Authorized Capital investment of the company divided into a number of shares and it shall be specified by the Company under this clause. Authorized Capital is the amount of money up to which it can raise the fund for their business activities.

What Is Object Clause In Memorandum Of Association Of The Company?

The detailed information of business activities to be performed by such Company after it is registered is specified in Object Clause of Memorandum of Association of the company. Business activities that are performed by the Company are included in the object clause and it is consist of two parts:

• Main Activities, and
• Activities adjuvant to the main business of the company

The Company is banned if the company carry on the business activities outside the assess of its objects. Following is the content of the object clause and the procedure for its rectification to conduct the business other than the remarked objects in the MOA of the company.

Reason To Amend Object Clause Of The Company

Mentioned below are some of the reasons for which the Company alters its object clause of MOA, and it may or may not be the same:

• The Company may willing to carry on its business activities on a larger scale by increasing the scope of its business operations or activities.
• To achieve the goals which are already set by the Company using new or improved methods.
• To work on some additional business activities which can be easily combined with the existing business operations of the Company
• To sell or dispose of the portion of the company operations which can modify the structure of the business.
• In case, if the Company is getting coalesced or combined with other companies, then the company has to expand its existing object clause.
• On receipt of the application, Registrar shall scrutinize the same. Upon satisfaction of the correctness of an application, it shall approve the alteration and certify the registration within 30 days of filing a Special resolution.