Under the Companies Act 2006, how can a company limit its objects?

• A. By including a special clause in the Memorandum.
• B. By filing a special resolution with the registrar.
• C. By choosing to limit its objects.
• D. By changing the company name.

Answer: (C)

The key idea is that a company’s powers come from its objects as stated in the memorandum. If the memorandum has no restrictions, the company can pursue a broad range of activities; to narrow that scope, the company must decide to define its objects. In practice, that means choosing to limit its objects by including an objects clause in the memorandum (whether when the company is formed or by amending the memorandum later). This defines exactly what the company is allowed to do and keeps its actions within that defined scope, with acts outside it being ultra vires.

The other options aren’t the mechanism for restricting objects: filing a special resolution with the registrar alone doesn’t by itself limit the range of activities unless it results in a memorandum amendment, and changing the company name has no effect on the objects or the scope of powers.