Change in Objectives
When a company starts a new line of business not covered by its Memorandum, the objects clause needs to change before that activity is formally in scope.
The objects clause in a company's Memorandum of Association defines the business activities it's permitted to carry out. Adding, removing or altering these objects requires a special resolution passed by shareholders, filed with the Registrar in Form MGT-14 within 30 days, along with the amended MOA. For companies in regulated sectors, sectoral regulator approval may also be needed before the new object can be pursued.
What's included
From drafting the new clause to the filed amendment.
- Drafting the revised objects clause
- Checking for sectoral licensing implications of the new activity
- Special resolution at a general meeting
- Filing Form MGT-14 within 30 days
- Updated MOA reflecting the amended objects
- Coordinating any related GST or licence updates for the new activity
When this filing is triggered
The situations we most often see.
Adding a New Business Line
Expanding into an activity not currently covered by the existing objects clause.
Removing a Discontinued Activity
Cleaning up the MOA to remove objects the company no longer pursues.
Restructuring for a New Sector
Pivoting the company's core business, which may also affect its name or licensing needs.
Our process
From initial consultation to completion.
Draft the Amendment
Prepare the revised objects clause reflecting the intended activities.
Pass the Special Resolution
Obtain shareholder approval at a general meeting.
File Form MGT-14
Submit the resolution and amended MOA to the Registrar within 30 days.
Update Related Registrations
Align GST, licences and other registrations with the newly added activity.
Why the objects clause can't be informal
What sets our approach apart.
Ultra vires risk
Activities outside the stated objects clause can be challenged as beyond the company's legal capacity.
Licensing and regulatory dependencies
Certain new activities require the objects clause to be amended before a sector-specific licence application can even be filed.
Investor and lender scrutiny
Investors and lenders check that the company's actual business matches its stated objects during due diligence.
Change in Objectives questions answered
What people ask before engaging us.
Adding a new business activity to your company?
We'll draft the amendment and file it correctly.
