Board resolution format for diversifying into a new line of business under Section 179(3)(h), with objects clause check and Section 13 alteration if needed.
“RESOLVED THAT pursuant to the provisions of Section 179(3)(h) and other applicable provisions, if any, of the Companies Act, 2013 and the rules made thereunder and the Memorandum and Articles of Association of the Company, consent of the Board be and is hereby accorded to diversify the business of the Company by commencing the business of [●] (the “New Business”), [which is within Clause [●] of the objects clause of the Memorandum of Association of the Company / subject to the alteration of the objects clause of the Memorandum of Association by a Special Resolution of the members under Section 13(1) of the Companies Act, 2013 and its registration by the Registrar of Companies].
RESOLVED FURTHER THAT the business plan for the New Business placed before the Board, including a capital outlay of up to ₹[●] (Rupees [●] only) to be funded from [internal accruals / [●]], be and is hereby approved, and Mr./Ms. [●] be and is hereby designated as the head of the New Business.
RESOLVED FURTHER THAT any Director and/or the Company Secretary of the Company be and is hereby severally authorised to obtain the licences, registrations and approvals required for the New Business [, to take the steps required for the alteration of the objects clause] and to do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.