Unrelated Activities in MoA


I receive a question on Quora which may interest readers of this Blog. The question is –

e.g. software services and educational services.

My Reply  –

There is difference, the way a average person or a Company Secretary (and Government) look activities related and unrelated.

In Memorandum of Association, there are two parts – one main object and other ancillary objects.

Presently, It is permitted to have diversified (unrelated) activities in main object clause. Otherwise also, a good draftsman can draft one paragraph main object clause to include many activities in one object clause.

Practice to have other objects clause has been stopped in 2014 after enactment of the the Companies Act, 2013.

In ancillary objects clause, activities which are supporting to any activities in main object clause be mentioned. Number of these ancillary activities should not be more than 50 (Fifty).

In example given in the question Software services and education services may be related activities depending upon minor details. I am not going in these details here.

Readers may reach original reply written on 16th October 2016 here.

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