Change in objectives of the company

Amend the object clause of the Memorandum of Association (MoA) to change the goals of a company. For this, pass a board resolution and then seek the RoC approval with your projected turnover details for 3 years.

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Change In Name And Objective

Change in objectives of the company

To change the goals or aims and objectives of your business, you need to amend the Memorandum of Association. The MoA contains the object clause. Now, this can be difficult to do, particularly if you’re a young company looking to completely change the main objects. But if you follow the right methods, it can be done quickly. For example, one mistake many companies make is to include several domains in the main objects. This will not be approved. For example, if you are in the software business, you can cover all software services in the main objects, but other services, such as design, should be included in ancillary or other objects of the company.

Why to Change in objectives of the company?

    • Undertake New Ventures: One of the main reasons companies update or change their objectives is to accomodate a transition into new ventures and fields. A business objective, when defined in the MoA restricts the scope of business of a company. Sometimes, as companies evolve, they need to branch out into other auxiliary fields to stay competitive. Therefore, vertical and horizontal expansion of the company results in an expansion of products, services and hence, the activities undertaken by the company. When a company starts out, the Directors may not have mentioned these services and products during the incorporation. Therefore, before branching out into such activities, the company must make the necessary changes in its objectives and business activity in order to branch out.
    • Company Takeover: When a company is taken over by another company, the management undergoes a major upheaval. The new company may want to retain the name, logo and other branding agents in order to capitalise on the market value built, but may want to take the business in a different direction. In such cases, the objects of the company which has been acquired might not be in accordance with the views or needs of the new management. Therefore, they require updating, in order for the business to grow and expand further. These changes can be made either after or prior to the takeover, as per the terms discussed during the negotiation.
    • Eliminate abandoned activities: Sometimes, as the company grows, top-level management understands that certain businesses or activities undertaken by the company will not work out. Therefore, they slowly reduce and then finally stop indulging in such activities. Furthermore, there are certain activities which are actively pursued during the growing phase of a Company, which is not required once the Company gets established. As an MoA is accessible to any person outside the company, it is important that it is kept as updated and relevant as possible. Therefore, from time to time, companies will need to remove abandoned activities from the MoA.
    • Banned or prohibited activities: As Governmental policies change over time, sometimes a company will have to change the way it works. For instance, if a particular activity undertaken by the company is deemed prohibited in the coming year, they will have to stop indulging in such an activity. Furthermore, they must remove that from their MoA, or completely change their objectives in order to avoid getting into legal hassles.

Documents Required

    • Notice regarding EGM
    • Attested True copy of the Special Resolution
    • Altered MoA
    • Minutes of the Board meeting and EGM
    • Certified True copy of Board Resolution (Optional)
    • ID proof of all the directors of the Company
    • Address proof of all the directors of the Company
    • Attendance Sheet or Register of the Board meetings and General Meetings

Process to Change in objectives of the company

Step 1

We help you register your directors with the Ministry of Corporate Affairs (MCA).

Step 2

We will file all the necessary forms for change in objectives of the company

Step 3

We make your interaction with the government hassle-free and assist you throughout the process.

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FAQs on Change in objectives of the company

These are documents that every Company must possess which defines the scope, rules, objectives, vision and mission of the organisation. They also contain details regarding all the shareholders and directors of the company, and are integral documents that every Company must have.
the changes made to the objectives will be effective only after the Registrar of Companies receives, accepts and acknowledges the application made. After the receival of their receipt, the company has the right to carry on the updated activities.
No, both of these are not interdependent. You do not have to change the name of the company in every case. However, if the present name, in no way reflects the new activities undertaken by the company, the Registrar of Companies may request the business to change the name of the company so that it has some relations to the new activities performed by the business.
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