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Adding business of food & beverages

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Rajesh P

17 Points Posted on 21 June 2022

One of our client company is a Pvt.Ltd. Company which is in the business of Cosmetics and other consumer products like room freshners, air freshners etc., now the said company want enter into the business of food & beverage, sugar, jaggery, noodles etc

is it necessary to add the above business or whether it can be presumed as all the above said bisiness is included in "other consumers products" mentioned in existing MOA

If need add in the MOA

please guide me the procedure of the same

Replies (9)

Quick Summary

A private limited company currently dealing in cosmetics and consumer products is looking to expand into the food and beverage sector, including items like sugar and noodles. The core question is whether this new venture is covered under 'other consumer products' in their existing Memorandum of Association (MOA) or if an amendment is necessary. The consensus leans towards amending the MOA, as food and beverages are considered a distinct business vertical from cosmetics, and including it explicitly would prevent potential issues with the company's stated objectives.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 22 June 2022

It may not be required to add it since it is covered in other consumer products .

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 22 June 2022

But in my view, add it

Chirag

Professional

1979 Points Posted on 22 June 2022

Amend MOA, Other consumer products are with reference to cosmetics ,edibles are seperate business vertical so it'll be better to amend MOA...

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 23 June 2022

For every small thing amendment is not required

Chirag

Professional

1979 Points Posted on 23 June 2022

@ Eswar , it's not a small thing ,if main objectives are good enough to cover any activity then there is no amendment, and ancillary activities can also be done without such change ,but when two different verticals are there which can't be justified with existing wordings, then it's better to include by amendment, likewise there is no need to mention ' cosmetics & other like products and then Any consumer goods ' when they are read in conjunction,then later seems only co-relate with main object of cosmetics ,so anything later become ultra vires ,either it will be better to delete 'Cosmetics ' or Add ' Edible trade'.. or "Include all kind of consumer goods from any sector ", that's my view !