i. Can the company with immediate effect start producing T.V. serials? Why? ii. How can the object clause of the company be altered?

Question

i. Can the company with immediate effect start producing T.V. serials? Why? ii. How can the object clause of the company be altered?

Study the following case and express your opinion:

The Object clause of Memorandum of a Company stated the main object as manufacturing of plastic chairs and tables and any other activity in furtherance of achievement of its main activity. The Board of Directors wants also to produce T.V. Serials and feels that the shareholders may give their permission.

i. Can the company with immediate effect start producing T.V. serials? Why?

ii. How can the object clause of the company be altered?

Monjur Alahi

5 views

2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

i. No, a company cannot start producing T.V. serials with immediate effect. A company cannot indulge in activities other than those provided in the object clause. The activities carried outside the scope drawn by the Memorandum of Association are called UltraVires activities.

ii. A special resolution must be passed in the General Meeting for altering the object clause.