As the name suggests, the name clause refers to the name of the company whereas the object clause refers to the company’s objectives disclosed in the “Memorandum of Association” drafted at the time of incorporation of the company. The change in the name of a company is possible through the assent of Directors and members of the company under the new Companies Act, 2013. The process further involves approval or consent of the shareholders and filing of significant forms with the registrar of companies. The change in the main object requires alteration in the Memorandum of Association of the Company. On the other side, object change can be done with the approval of the Board of Directors in the meeting. According to Companies (Incorporation) Rules, 2014, an application is required to be submitted to the registrar along with an advised fee of Rs. 1,000 through Form INC-1.
Change in the object requires alterations or amendments in the Memorandum of Association of the Company. The significant element of the memorandum is contained by the main object clause due to the fact that the clause represents the business nature of a company. It concludes that change in main objects implies change in the business nature of the company.
(1) Memorandum of Association of the Company also needs to be changed if there is a change in the main objects of the company.The main object clause of the company has significant parts of Memorandum included in it. This clause explains the business nature of a company. Thus, business nature of the company is also changed with the change in object of the company.
(2) Approval for the alteration of main object clause of memorandum in the board meeting by board of directors is also significant. Thus, date, time and venue needs to be fixed according for convening General Meeting to obtain the approval.
(3) Form MGT-14 is to be immediately filed after the approval from the Shareholders. It has to be noted that the time frame should be 30 days.
As significant changes are required to be made after the name and object change of a company, the changes and activities post name and object change include conducting the board meeting to present new certificates before the board and making necessary changes in the name clause and object clause in each copy of Memorandum of Association and Articles of Association of the Company.