In company's moa was written that the object of the company is trading of fruits . Then company enters into a partnership firm form a firm and did a manufacturer activity. Is that the company did any

Pranab · 15 Mar 2025

Absolutely its against the MOA , as it is beyond the scope of its MOA

Pihupandey · 12 Mar 2025

I did not understand the question..what do you want to ask.?

MANIKANTA · 10 Mar 2025

Company did not manufactured the company here entrance in the partnership the partnership manufactures the product how can we understand this case

Pihupandey · 10 Mar 2025

Yes, the company has acted beyond the scope of its Memorandum of Association (MOA) if it engaged in manufacturing when its stated object is trading of fruits. Legal Implications: 1. Doctrine of Ultra Vires: Any activity outside the MOA’s object clause is considered ultra vires (beyond powers) and void. 2. Liability: The company cannot legally enforce contracts related to manufacturing, and stakeholders can challenge such actions. 3. Rectification: The company should amend its MOA through a special resolution (Section 13 of the Companies Act, 2013) and get approval from the Registrar of Companies (ROC). Thus, forming a firm and engaging in manufacturing without altering the MOA is against the law. The company must amend its MOA to include manufacturing as an objective.