A company is only authorized to conduct business which is within the limits of the object of the company. An alteration in the MOA would mean an alteration of the object. An alteration would mean an addition or deletion in the MOA as per companies act, 2013 compliance procedure.
PROCEDURE OF ALTERATION
The object clause is of great importance as it explains the purpose of its establishment, hence an act beyond the memorandum is considered ultra vires or outside the capacity of the company. Thus act beyond the capacity of the business is considered void. Alteration of the object clause of the company has compliance procedures to be followed.
A board meeting has to be conducted for the decision to be taken on alteration of object clause of MOA and thereafter a general meeting is to be conducted to pass the resolution for such change. These changes have to be filed with the registrar of companies (ROC) within 30 days of passing the alteration resolution.
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