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(i) Under the provisions of the Companies Act a company may alter the objects clause o its memorandum so far as may be necessary to enable it:
- Carry on its business more economically and more efficiently.
- Attain its main purpose by new or improved means.
- Sell or dispose off the whole or any part of its undertaking.
- Amalgamate with any other company or body of persons.
- Carry on sum business which under existing circumstances may conveniently or advantageously be combined with the business of the company.
- Enlarge or change the local area of its operations.
- Restrict or abandon any of the objects specified in the memorandum.
(ii)
- An extra ordinary general meeting must be summoned. The notice of the meeting must notify the members of the intended resolution and the resolution must be framed in the notice in the manner in which it will be passed.
- The general meeting must pass a special resolution authorizing the change or alteration of the objects clause. i.e. must inter alia be supported by at least 75% of the members present and voting in person by proxy.
- A copy of the resolution must be delivered to the registrar for registration within 30 days of its passing where upon the alteration becomes legally effective.
-However, a proposed alteration of the objects clause may be objected to by members or creditors applying to the court for its cancellation. In such a case, the court may order the alteration to be cancelled or dismiss the application.
marto answered the question on February 6, 2019 at 11:28
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