Change in Objects Clause

CA Sandeep Kumar (Audit Assistant) (804 Points)

26 November 2010  

Hi members i have a doubt.

A company was into real estate business till date, and due to decline market value of properties the company is not able to survive in the existing business, therefore the company intends to venture into hotel industry. Hotel will be set up in the land owned by the company. Issue is, hotel business is not in the objects clause? Please advise whether alteration can be made to objects clause incorporating hotel business, bearing in mind provisions of section 17 (1).. 

Also, post any case laws/circulars in this topic