Change Objective Of Your Business
Changing your business objectives can be a strategic move to adapt to market changes or pursue new opportunities. However, it’s important to follow the legal steps to make it official. Here’s a breakdown of the process:
Legal Procedure:
- Board Resolution: Convene a board meeting and pass a resolution proposing the change in objectives.
- Extraordinary General Meeting (EGM): Hold a special shareholder meeting to get approval for the amended objectives. This typically requires a majority vote.
- Form MGT-14 Filing: Once approved, file form MGT-14 with the Registrar of Companies (ROC) to officially update your Memorandum of Association (MoA). The MoA outlines your company’s core objectives.
- Fresh Certificate: Upon successful filing, you’ll receive a fresh Certificate of Incorporation reflecting the updated objectives.
Additional Considerations:
- Depending on your location, there might be additional legal requirements or fees involved. Consulting a business lawyer familiar with your jurisdiction is recommended.
- Changing objectives can impact stakeholders like investors, partners, or creditors. It’s advisable to keep them informed throughout the process.