Memorandum Of Association

Memorandum of association of any company defines the scope of its activities. MOA Alterationcan be done for different clauses such as :

• Change in Company's Name
• Change in objective of company
• Increased in authorised capital
• Change in office Address
• Change in share holder/director etc.
Company’s Memorandum of Association can amend by holding a Board and shareholders meeting and passing necessary resolutions to this effect. After passing necessary shareholder’s resolution, you are required to file copy of resolution and amended MOA in Form MGT - 14 and other forms (depending upon nature of amendments) with MCA and obtain their approval.

Why Change Business Objectives?

The business objectives stated in the MoA restrict the scope within which a business can act. So, changing objectives is necessary for the following situations:

Undertaking New Ventures

When your company is expanding vertically or horizontally into new areas resulting in new products or services or activities, the objectives need to be changed to accommodate it.

Company Takeover

When a company is taken over by another company, major changes take place. The branding of the original company may continue to remain the same, but more often than not, the direction and vision for the company are changed.

Eliminate Abandoned Activities

It might so happen that, over time, some of the activities of the company may prove to be unnecessary or pointless. In which case these activities will be slowly abandoned and the company will have to edit the objectives to reflect the same.

Banned or Prohibited Activities

Government policies keep changing. Sometimes an activity that was legal when the business started may be declared illegal or the government may restrict permissions. In such cases, your company should avoid that activity and amend the objectives to avoid legal consequences.