Object change for a company in India
Every company in India do the registration process as per the regulations followed from the early days. So the way of describing the company details involving the employee responsibilities, company rules etc in the Memorandum of association and Articles of association.
While incorporation a company the use of objects is important than anything and it will be clearly mentioned in MOA. Objectives or objects of a company may not be same all the time after the incorporation, so the change requirements for the objectives is allowed sometimes. In this articles the object change requirement for a private limited company or public limited company is provided as follows:
Notice issue for the change of objects
Telling about the object change pattern of any company in India should follow the procedure of notice submission to conduct board meeting. Notice to the directors contains the information about the board meeting date, time, place and agenda in order to pass a special resolution for the necessary changes in MOA of the company. Another important thing is the process of issuing notice should be lesser than 21 days by mentioning the written proposal of the special resolution with required explanation.
There are public limited companies (listed or unlisted) with more than 200 shareholders may require postal ballot for the special resolution proposal
General Meeting for object change
At the point after the notice issue the general meeting is conducted in order to pass the special resolution by the 3/4th majority. In the case of listed or unlisted public limited companies the process for conducting general meeting is not required. The post ballot is passed to the shareholders of the company by the chairman or director.
But you need to know about the listed company’s procedure here:
Step 1: There are stock exchanges were the listed companies are availed and the copies of the notices are sent.
Step 2: The decision involving the required changes in the MOA of the company in general meeting follows the next phase of filing the copies of amendments with the stock exchange
Step 3: Even the copies of notices and further proceedings at the meeting also submitted to the stock exchange.
MGT-14 File
So far we have seen about the general meeting and also the process of passing special resolution. Now the copy of special resolution with explanatory statement is mandatory to be filed at the concerned ROC within 30 days of time. The managing director or manager of the company should sign the MGT-14 file digitally by the board of resolution. Along with that the digital signature of the chartered accountant or the company secretary is also used in the MGT 14 file.
