Under the Companies Act 2006, what is the default status of a company's objects clause?

Under the Companies Act 2006, what is the default status of a company's objects clause?

• A. The objects clause is unlimited by default.
• B. It is unlimited but may be limited if the company chooses to do so.
• C. It must be specified in the memorandum.
• D. It is always restricted to corporate purposes.

Answer: (B)

Under the Companies Act 2006, there is no mandatory objects clause in the memorandum. If no objects are stated, the company has unlimited objects and can pursue any lawful business. However, the company can choose to restrict its activities by including a specific objects clause in the memorandum, and this restriction can be changed later by a special resolution and filing. So the default is unlimited, but may be limited if the company chooses to do so. The other options aren’t correct because the memorandum does not have to specify objects by default, and companies aren’t automatically restricted to corporate purposes.

Under the Companies Act 2006, there is no mandatory objects clause in the memorandum. If no objects are stated, the company has unlimited objects and can pursue any lawful business. However, the company can choose to restrict its activities by including a specific objects clause in the memorandum, and this restriction can be changed later by a special resolution and filing. So the default is unlimited, but may be limited if the company chooses to do so. The other options aren’t correct because the memorandum does not have to specify objects by default, and companies aren’t automatically restricted to corporate purposes.