Object Clause (Corporate Law)

This query is : Open

viveka

( Author )
18 April 2011

dear Sir,

Can a company amend its main object so that it includes two or more biz. To be more specific can a compnay with tourism as main object undertake activities like hoteliering, amusement parks, confectionery etc...are there any case laws in this regard

B.Chackrapani Warrier

( Expert )
18 April 2011

A company can very well amend the object clause as per the provisions of the Companies Act,1956, provided the name of the company shall also reflect the main object of the company meaning thereby in certain situations name change need to be sought for.

viveka

( Author )
19 April 2011

Thank you sir,

As per the provisions of the act we conducted the AGM and there resolution was passed for change of name and amendment of object clause. The changed name approved by RoC is "X" travel and tours. In this case the name part is fine but in the amended object we had included hoteliering, amusement parks, confectionery etc. Now the RoC has raised an objection that the above biz is not related to Travel and Tourism and has asked for a resubmission.

My doubts are:

1. Can we convene a Board meeting and pass a resolution removing hoteliering, amusement parks, confectionery from the object clause and then resubmit the form with the new object(is the Board competent to do so i.e,amend the resolution passed at EGM, or do we need to go for another EGM)

2. Can the object clause contain hoteliering, amusement parks, confectionery etc..when the name is X tour and travels. (If the answer is yes and there are known cases we can give an explanation to RoC)

Please give your valuable solutions.(this is urgent sir..)