Companies may need to change their objects, which are the specific activities the company is authorized to undertake as per its Memorandum of Association. This could be due to a change in business strategy or a need to expand into new markets. Changing company objects can be a complex process, but it is essential for the growth and success of the company. In this blog, we will explore how to get a change of company objects in a successful way.
- Conduct a Board Meeting: The first step in the process is to conduct a board meeting to discuss the need for changing the company objects. The board of directors should discuss the implications of the proposed changes and assess the impact on the company’s future growth and profitability.
- Obtain Board Approval: After the board has approved the proposed changes, the next step is to obtain board approval. The board resolution should include the proposed changes to the company objects and the reasons for the change.
- Obtain Shareholder Approval: The next step is to obtain shareholder approval for the change of company objects. The shareholders should be provided with all relevant information regarding the proposed changes and given the opportunity to ask questions and express their views.
- File a Special Resolution: After obtaining shareholder approval, a special resolution needs to be filed with the Registrar of Companies. The special resolution should include the proposed changes to the company objects and be accompanied by the board and shareholder resolutions.
- Obtain Approval from the Registrar of Companies: After filing the special resolution, the Registrar of Companies will review the proposed changes to the company objects. If the Registrar is satisfied with the proposed changes, they will issue a certificate of incorporation with the amended objects.
- Amend the Memorandum of Association: After obtaining approval from the Registrar of Companies, the company’s Memorandum of Association needs to be amended to reflect the new objects. This can be done by filing the amended Memorandum of Association with the Registrar.
- Update other legal documents: After amending the Memorandum of Association, other legal documents, such as the company’s articles of association and other contracts, need to be updated to reflect the new objects.
Changing company objects can be a complex process, but it is essential for the growth and success of the company. By following these steps, companies can successfully change their objects and adapt to changing market conditions. Conducting a board meeting, obtaining board and shareholder approval, filing a special resolution, obtaining approval from the Registrar of Companies, amending the Memorandum of Association, and updating other legal documents are all crucial steps in the process. Companies that approach this process with careful planning and attention to detail are more likely to achieve a successful outcome.