Explain the procedure to be followed in altering the objects clause.

An extra ordinary general meeting must be summoned. The notice of the meeting must notify the members of the intended resolution and the resolution must be framed in the notice in the manner in which it will be passed.
• The general meeting must pass a special resolution authorizing the change or alteration of the objects clause. i.e. must inter alia be supported at least 75% of the members present and voting in person proxy.
• A copy of the resolution must be delivered to the registrar for registration within 30 days of its passing where upon the alteration becomes legally effective.
• However, a proposed alteration of the objects clause may be objected to members or creditors applying to the court for its cancellation. In such a case, the court may order the alteration to be cancelled or dismiss the application.

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