Change Objective/Activity

Overview of changing company objectives:

Anytime in a company’s business tenure, it might decide to change how it does things or choose an entirely new path. In such cases, it might be looking to change objectives. This process has many steps, and is not straightforward, say experts from Eazy Startups. Starting from the modifications to the MoA, there are multiple steps.

Eazy Startups and the team can ease the entire process for you and help you change your company objectives to whatever you desire.

Why do Businesses change their Objectives?

The activities and actions of a company are restricted to their relevance to the business objectives mentioned in the MoA. In the following situations, changing objectives becomes necessary:

• Company Takeover: Many changes take place if some other company takes over a company. It might be that the name of the company, its logo, and its branding will not change, but there will be a change in the way it operates and its goals.
• Undertaking New Ventures: In case the company is bringing in additions to its catalogue of products and services, or if it is entering a new market, it might look to change objectives. A different geographic location and vice expansion can also be a reason for the need to change objectives.
• Banned or Prohibited Activities: Government regulations and policies regarding business activities and operations often change. Suppose a business has to stop continuing certain activities because they might be prohibited or illegal due to some recent governmental policy change. In that case, also the company will have to change its objectives to adapt to the new laws.
• Eliminate Abandoned Activities: Sometimes, old ways work no more. In such a situation, it is best to change a company’s objectives and develop new methods.

Steps to Change the Objective of the Company

The MoA explains two major objectives:

• Main object: This covers the main activities of the company
• Ancillary object: This covers the crucial activities for conducting business plans.

To get these objectives changed, you will need to follow the five steps:

Step 1: Board Resolution

In order to make the necessary changes to the company’s name and objectives, a board meeting needs to be held, and a resolution passed. Forms required to be filed with the RoC should be signed, certified, and filed by a director/company secretary.

Afterward, members’ extraordinary general meeting (EGM) will be scheduled at a fixed time and place.

Step 2: Special Resolution in EGM

The members will pass a special resolution at the EGM. A notice should be sent to all members with the certain mandatory information, and the resolution is passed after this notice is circulated.

Step 3: File form MGT-14 with RoC

For further processing, the company and its director(s) must file form MGT-14 with the RoC. There will be other documents to be attached to this form.

Step 4: Issuance of Fresh Certificate of Incorporation

If the industry code changes, there can be a change in the CIN Number, then a new certificate of incorporation will be issued to the company by the ROC.

Step 5: Incorporation of the MoA Object Clauses

Once the RoC issues the incorporation certificate, the company has to incorporate the object clause in all the MoA copies.

Required Documents

• Notice calling out to board members for EGM
• Attested copy of the presented resolution
• Minutes prepared during the EGM
• Modified MoA
• Directors of the Company must present their id proofs
• Proof of address of all the directors of the company
• Attendance register for the board meetings

Frequently Asked Questions