Hello,
There are specific steps that needed to be followed for altering the AOA of a company –
- Convene a Board meeting – Firstly, hold a Board meeting and find that particular article that needs alteration. The alteration does not mean only altering the existing articles. It may also include the addition or deletion of any articles. After that, a formal resolution is passed for this.
- Any changes in the Articles of the AOA need to comply with the provisions of Companies Act, and the conditions contained in the MOA of the Company. You need to check that any such changes do not increase the liability or expulsion of any member after the alteration.
- A time, date, and venue are fixed for the general meeting to fix the resolution.
- A Company Secretary is authorized to issue the notice of the general meeting.
- Thereafter, if the shares of your Company are enlisted with any recognized stock exchange, then forward copies of all notices to the shareholders about the changes in the AOA to the Sock exchange.
- Form MGT-14 is filed with the ROC (Registrar of Companies).
- At last, you can make necessary changes in all the copies of the AOA.
Effects of Alteration in AOA
- Companies need to alter their articles according to the requirements. The most important thing is that a company cannot alter its article for their personal benefit or for the sake of doing illegal business.
- Alteration in the AOA of a company bounds the Company to its members.
- The AOA governs the internal management, business, or administration of the Company. (Corpbiz)
For more input visit related articles and threads:
https://www.lawyersclubindia.com/articles/drafting-of-article-of-association-2330.asp https://www.lawyersclubindia.com/experts/alteration-of-articles-of-association-223431.asp https://www.lawyersclubindia.com/FORUM/re-alteration-of-articles-of-association-668.asp
Thank you
