Section-16 Companies Act-2013: Rectification of name of company

Section-16 Companies Act-2013: Rectification of name of company

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Section-16 Companies Act-2013: Rectification of name of company

The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation

of a company, responsibilities of a company, directors, dissolution of a company.

The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956

and has 7 schedules. The Act has replaced The Companies Act, 1956 (in a partial manner) after receiving the assent

of the President of India on 29 August 2013. The Act came into force on 12 September 2013. A total of another 184

sections came into force from 1 April 2014.

(1) If, through inadvertence or otherwise, a company on its first registration or on its registration by a

new name, is registered by a name which,

(a) in the opinion of the Central Government, is identical with or too nearly resembles the name by

which a company in existence had been previously registered, whether under this Act or any previous

company law, it may direct the company to change its name and the company shall change its name or

new name, as the case may be, within a period of three months from the issue of such direction, after

adopting an ordinary resolution for the purpose;

(b) on an application by a registered proprietor of a trade mark that the name is identical with or too

nearly resembles to a registered trade mark of such proprietor under the Trade Marks Act, 1999, made

to the Central Government within three years of incorporation or registration or change of name of the

company, whether under this Act or any previous company law, in the opinion of the Central

Government, is identical with or too nearly resembles to an existing trade mark, it may direct the

company to change its name and the company shall change its name or new name, as the case may be,

within a period of six months from the issue of such direction, after adopting an ordinary resolution for

the purpose.

(2) Where a company changes its name or obtains a new name under sub-section (1), it shall within a

period of fifteen days from the date of such change, give notice of the change to the Registrar along

with the order of the Central Government, who shall carry out necessary changes in the certificate of

incorporation and the memorandum.

(3) If a company makes default in complying with any direction given under sub-section (1), the

company shall be punishable with fine of one thousand rupees for every day during which the default

continues and every officer who is in default shall be punishable with fine which shall not be less than

five thousand rupees but which may extend to one Lakh rupees.

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