entered by the company cannot be beyond the object clause, if a contract is made so, then it becomes an ultra virus act. However, an alternative recourse for preventing the contract from becoming ultra virus is the alteration of the object clause.

There are mainly two methods of altering the object clause of the company:

1. Alteration by the company which does not issue prospectus needs to be done as mentioned under section 13 (1) read with rule 22 (10) of the companies rule 2014 and,
2. Alteration by the company which had issued prospectus.

The company which has not issued the prospectus can alter its object clause by passing a special resolution that requires 75% of the consent of the shareholders. The requirement of passing a special resolution for the alteration of the object clause is exempted for a company having members up to 200.

 A company that has issued a prospectus and raised funds from the public and utilized the amount so raised shall change the object clause bypassing the special resolution. However, if there is any unutilized amount out of the funds raised then the company has to comply with the following procedure:

1. Issue Notice in respect of the resolution sent to the members for altering the objects that shall contain the following particulars: a. Total money received b. total money utilized, c. Unutilized amount of money for the particular objective, d. Particulars of proposal alteration, e. Justification for alteration, f. Amount proposed to be utilized for the new object and lastly g. Estimate the financial impact of the proposed alteration on the cash flow of the company.
2. An advertisement giving the details of the resolution to be passed for the alteration of objects shall be published in the newspaper. One in English and one in the vernacular newspaper.
3. The advertisement should be published simultaneously with the dispatch of a notice to shareholders.
4. Notice shall also be displayed on the website of the company indicating justification for the change
5. The company shall file form MGT 14 with all other documents within 30 days of passing the special resolution.
6. The Registrar of the company shall register the alterations and certify that the company has duly complied with all compliances and thus the alteration shall be deemed to be complete

These are the steps to be followed by a company that has raised money or funds through issuing the prospectus. Any changes in the object clause of the company should be made by following the procedure as stated in the Company’s Act and the Company rule book 2014.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.