⇒ A company’s objectives are defined in its Memorandum of Association (MOA) and outline the purpose for which the company was formed. Sometimes, companies may wish to change or expand their business activities, such as entering new sectors or discontinuing certain operations. In such cases, the company must legally amend its MOA to reflect the new objectives.
⇒ To change the object clause, the company needs to pass a board resolution, followed by a special resolution at a general meeting of shareholders. It must then file Form MGT-14 with the Registrar of Companies (ROC) along with the updated MOA. If the company has raised money from the public and has not fully utilized it, it must also pass a special resolution through postal ballot and provide justifications for the change. Once approved, the new objectives become legally binding.