Changing 'Nature Of Business'
Discussion
Its a company which I used to carry out freelance surveying in the past & as such its nature of business was '7414: Business & Management Consultants'. However, it is now doing something completely different (I changed name a few months ago, etc) & as such want to change its 'nature of business'.
OK, I see what you mean now. Have you checked your Memo and Arts to ensure that the company can actually carry out this "new" activity.
These days, the "Objects Clause" in the Memo and Arts of a company are so widely drafted that most companies have no problem with taking on new business activities. However, it does pay to check what the Objects Clause actually says. You don't want to find yourself acting "Ultra Vires" the rules of the company.
On a related point, the new Companies Act is doing away completely with the Objects Clause. In effect, the law is now recognsing the fact that these clauses have become so wide and vague that they are almost meaningless.
These days, the "Objects Clause" in the Memo and Arts of a company are so widely drafted that most companies have no problem with taking on new business activities. However, it does pay to check what the Objects Clause actually says. You don't want to find yourself acting "Ultra Vires" the rules of the company.
On a related point, the new Companies Act is doing away completely with the Objects Clause. In effect, the law is now recognsing the fact that these clauses have become so wide and vague that they are almost meaningless.
Edited by Eric Mc on Monday 18th February 08:42
Gassing Station | Business | Top of Page | What's New | My Stuff