What is the purpose of stating the "object clause" of a company in its memorandum? Can it be altered? How?

Objective Clause:

 
Objective clause is one of the important elements of Memorandum of Association. The main objects of the company are disclosed clearly in the objective clause. The Companies Act 1994 requires disclosing the main ' objectives relating to form a company under his Act. The main objects and objects incidental are identified in the objective clause to enable the members of the company, its creditors and the public to know the range of activities of the company. Without stating objective clause no company can be registered under this Act.

A company can change the objective clause under the following circumstances (Section 12):

1. To carry on its business more economically and efficiently;
2. To attain its business operation by new and improved way;
3. To enlarge the area of operation;
4. To carry on some operation which will be more advantageous for the interest of the company;
5. To restrict, abandon any of its objects; and
6. To amalgamate with any other company or body.

Objective clause can be changed by passing a special resolution and having permission of the court.