Main object alteration for firm takeover

2703 views 2 replies

Mitali Agarwal

Company Secretary

638 Points Joined January 2009

Hello Friends,

I would like to know that whether is it necessary to have the object of " acquisition of business/assets of any undertaking, firm or company" as a part of the main object clause before taking over a running partnership firm?

The above object is under the head "Objects ancilliary to attainment of main objects".

If yes, then whether a common object like above is to be included under main Objects or the name of the firm being acquired should be specifically included. (the name of the company will not go with this object)

Replies (2)

Mitali Agarwal

Company Secretary

638 Points Joined January 2009

Dear Learned Members,

Please giv your views....

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Dear Mitali,

In case of acquisiton of Company:-

In case of any arrangement, it is not necessary that it must be in the Object Clause of the Company. The company may include it in the terms of scheme and the court will approve the scheme. and memorandum will be altered pursuant to the scheme of arrangement.

In case of acquisition of business or assets of firm:-

It is not necessary that the said clause is in the list of main object. However, to carry a object in the other objects a special resolution is required to be passed and a form 20A is also required to be filed.

Otherwise it must be in the main objects list.

Contrary views are welcome.