Changes in Company

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Overview of Changes in Company

 

Any changes in a business must align with the provisions outlined in the Companies Act of 2013 and the Company's Articles of Association (AOA). The approval for any business change must be clearly explained and sanctioned by the shareholders. Changes can vary from a shift in organizational goals to a change in ownership or a transition from private limited to public limited.

 

 

Add a Director 

 

According to the Companies Act, the Board of Directors can appoint new directors based on the authority granted by the Articles of Association. The appointed director must meet the criteria specified in the Articles of Association and provide consent to be a registered director.

 

 

Remove a Director

 

The removal of a director requires approval through an ordinary resolution. The process involves announcing a board meeting with seven days' notice and ensuring compliance with the terms set by the Central Government or Tribunal.

 

 

Increase Authorized Capital

 

A company may need to increase its authorized share capital before issuing new equity shares. This requires passing a special resolution by the Board, amending the Memorandum of Association to offer new shares or increase the Authorized Capital.

 

 

Close the Company

 

Shareholders can initiate the voluntary winding-up of a company, settling outstanding dues and complying with necessary requirements such as annual income tax return filing and surrendering GST registration.

 

Change Objective/Activity

 

To change the objectives and goals of a company, an amendment to the Memorandum of Association is necessary. This process may involve clarifying and specifying the main objective to align with the company's actual business activities.

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