advise

Statutory Audit 699 views 3 replies

Avi

CA final and CS Prof.

227 Points Posted on 04 October 2010

while doing an audit of a firm . i checked the MOA and there was no object clause in it. i checked some other copies i didnt find in any of the copies.with the company officials whole recored was digged out and it was found that there was no object clause in MOA filed with ROC .

the company was formed before the companies act 1956.the object clause came at later date.

the company is having all the certificates of incorporation and commencement. the company also wants to diversify the business and has done it in past. now with no obejct clause what will company do and what will happen to diversified business in the past and what will they do in future

plz help mee. i cant understand what to do

Replies (3)

Yogesh Shah

Managing Corporate Finance

1051 Points Posted on 05 October 2010

Hi Abhishek,

In my opinion answer would be as -

Once the Certificate of Incorporation is issued it means that all procedural formalities are complied with and no one can challenge it. As company is also regd prior to Act, 1956, I don't think any problem will be there. Still if the company wants to insert it in MoA, they can amend the MoA. Applicable procedure they will have to follow then.

Waiting for other valuable views.

Avi

CA final and CS Prof.

227 Points Posted on 05 October 2010

thanks for your replying

but the issue is that they have not inserted the clause in MOA. so according to me a MOA can only be amended if it is having a clause. Now there is no clause of object. so still what to do