Start a new business mentioned in other business
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 December 2012
what is the procedure for start a new business which is under other business clause of MOA if we have a private company?
and also describe will sec.149 apply on private company?
and also describe will sec.149 apply on private company?
Ajay Mishra
(Expert)
07 December 2012
Hi
Section 149 of the Companies Act, 1956 is not apply to private limited company.
In case of public company:
Where an existing public limited company proposes to take up a new business, which is covered in the "other objects" of the Memorandum in the case of a company formed on or after 15-10-1965 or covered in the object clause of a company formed before 15-10-1965, the said business can be undertaken by the company only after the proposal is approved by the members by a special resolution.
The said business will be considered as a new business, in the case of a company existing prior to 15-10-1965 only when the new business is not germane to the business, which the company was carrying on at that time.
Section 149 of the Companies Act, 1956 is not apply to private limited company.
In case of public company:
Where an existing public limited company proposes to take up a new business, which is covered in the "other objects" of the Memorandum in the case of a company formed on or after 15-10-1965 or covered in the object clause of a company formed before 15-10-1965, the said business can be undertaken by the company only after the proposal is approved by the members by a special resolution.
The said business will be considered as a new business, in the case of a company existing prior to 15-10-1965 only when the new business is not germane to the business, which the company was carrying on at that time.
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