memorandum
mintu
(Querist) 10 November 2008
This query is : Resolved
Sir
Kindly asvise me on following facts:
X Co. Ltd. is a public limited company having its object clauses like the following:
Main Object:
a.Manufacturing, branding, selling, etc cigarettes and other tobacco products.
b.Purchasing all materials needed to manufacture, brand, patent of the above products and all assets including plants and machinery needed.
Ancillary Objects:
a.Enter into any contracts, lease agreement, etc for the purpose of the main objects.
b.Manufacture, sale and otherwise disposal of any byproducts.
Other objects:
a.Manufacturing consumable food stuffs and selling the same.
b.Doing any other business that the company deems it profitable and beneficial to the company
Can a company have such a vague object such as "DOING ANY OTHER BUSINESS THAT THE COMPANY DEEMS IT PROFITABLE AND BENEFICIAL TO THE COMPANY" ?Please tell provision or caselaw if any.
Directors of the Board of the said company ask for your advice on the proposal of starting a Hotel business in Bangalore. Give a detailed advice to the company.
Thanking you
mintu kumar
Murali Krishna
(Expert) 10 November 2008
Though, the said business is not mentioned as one of the main objects of the company, I feel that the company can engage in that business because it comes in other objects.
I feel that the objects of a company need no be interpreted like a statute - 'ejusdem generis'.
K.C.Suresh
(Expert) 12 November 2008
They can start other business
Manish Singh
(Expert) 13 November 2008
make a special resolution in this effect and carry on the business.
arunprakaash.m.
(Expert) 20 November 2008
A. Pass a spcial resolution for starting a new business and change in the main object clause.
B. In case of public ltd co publish in
newspaper for hearing objection.
C. File report with the concerned registrar of companies.
