Rise Ltd. was incorporated under the provisions of the Companies Act, 2013 and a certificate of incorporation was issued by the Registrar of Companies (ROC), New Delhi. Due to inadvertence, the name of the company was fo

CS Professional · Advanced Company Law and Practice · PYQS · December 2016
Rise Ltd. was incorporated under the provisions of the Companies Act, 2013 and a certificate of incorporation was issued by the Registrar of Companies (ROC), New Delhi. Due to inadvertence, the name of the company was found to be similar to the name of another company already registered with the ROC. The ROC on knowing this fact serves a notice upon the company for rectification of the name. Referring to the provisions of the Act, answer the following: (i) What action shall the company take in response to the notice served upon the company by the Registrar of Companies ?

Answer & Explanation:

In accordance with the provisions of the Companies Act, 2013, as contained under section 16(1)(a), if a company is registered through inadvertence or otherwise by a name which is identical with or too nearly resembles, the name by which a company in existence has been previously registered, the company itself shall change the name by passing of an ordinary resolution at the direction of the Central Government. In such a case, the company should pass an ordinary resolution within 3 months from the date of the issue of such direction. There is no time limit for Central Government to issue such direction. Further, according to Section 16(1)(b) of the Companies Act, 2013, a registered proprietor of a trademark may apply to the Central Government within 3 years of incorporation or registration or change of name of the company whether under this Act or any previous company law for issuing direction to the company for change of its name on the ground that the name of the said company is identical with or too nearly resembles to a registered trademark of such proprietor under the Trademarks Act, 1999. Where, in the opinion of the Central Government the name is identical with or too nearly resembles to an existing trademark, 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 6 months from the date of issue of such direction by adopting an ordinary resolution. Accordingly: (i) The company shall apply to the Central Government for rectification of name by filing of Form INC-1 for the name availability and then by passing an ordinary resolution within 3 months from the date of issuance of such direction and the same be intimated to the concerned ROC for the issuance of the Fresh Certificate of Incorporation of the company as prescribed under section 16(2) of the Companies Act, 2013.

Topics: Company Name

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