Manufacturing
This query is : Resolved
Rekha Sharma
(Querist)
24 October 2011
can a pvt company deals in manufacturing if memorandam has clause that it can manufacture
24 October 2011
The word 'manufacture' alone is not sufficient whereas that particular clause has to be read in full before deciding on the matter.
Further
1)for manufacturing activity, the minimum authorized capital of the company should be Rs.10 lakhs.
2) if the referred clause is in 'ancillary objects'section of the MOA, Board of directors approval by way of resolution is required.
3) on the other hand if it is in 'other objects' section of the MOA, shareholders approval is required through their general meeting.
Further
1)for manufacturing activity, the minimum authorized capital of the company should be Rs.10 lakhs.
2) if the referred clause is in 'ancillary objects'section of the MOA, Board of directors approval by way of resolution is required.
3) on the other hand if it is in 'other objects' section of the MOA, shareholders approval is required through their general meeting.
CA. CS. Paras Shah
(Expert)
24 October 2011
Mr. Warrier, Ms. Rekha is refering to the word Manufacturing in object clause, thus no where in Companies Act, 1956 or MCA Rules, CIrcular, Notification it states that for use of word Manufacturing in your object clause you need to have minimum capital of Rs. 10 Lakhs. however if you use word Manufacturing in your company name then you need to have minimum Capital of Rs. 50 Lakhs as per new rules of Companies (Name Availability) Rules, 2011.
Thus presuming that the word is used only in object clause and not in name there is no requirement of Rs. 10 or 50 Lakh capital. One Lakh can do..
Thus presuming that the word is used only in object clause and not in name there is no requirement of Rs. 10 or 50 Lakh capital. One Lakh can do..
24 October 2011
Rs. 10 lakhs in my observation may be corrected to read as Rs.50 lakhs. I stand corrected to that extend. Thanks to Mr.Shah.
CA. CS. Paras Shah
(Expert)
24 October 2011
Sir still i feel that there is no requirement to have Authorized Capital of Rs.50 L if the word "manufacturing" is only in object clause and not in the Name of Company.
24 October 2011
I had an occasion to face objection from ROC for minimum capital requirement since object clause alone contained the word 'manufacture'.
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