CC04 Statement of Company’s Objects

Before the Companies Act 2006 came into force, every company was required to have a clause in its Memorandum of Association which set out the objects (i.e. purpose) of the company. It was difficult to change the objects at a later date and a company was not permitted to undertake activities which fell outside its objects.

Now, there is no requirement for a company to have objects, but if the person forming the company wishes, he can include an objects clause in the Articles of Association. Provisions in a company’s articles of association can be changed by passing a ‘special resolution’ (that is to say that a resolution to change the company’s Articles must be approved by a majority of at least 75% of the company’s shareholders by value).

Additions and removals of, or changes to a company’s objects clause are not effective until Companies House has been notified of the changes using this form, and has been provided with a copy of the amended Articles and a copy of the resolution approving the change.