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: (iii) What are the implications of rectification of name of the company on the contracts already entered into by the company? Also, state whether the change/rectification shall result in the dissolution of the company.

Answer & Explanation:

(iii) In third case, change of name shall not affect any rights or obligations of the company (i.e. there will be no adverse effect on the contracts already entered by the company). Further, the change of name of the company does not result in the company's dissolution. And, the fresh Certificate of Incorporation issued on the approval of the change of name of the company would not be treated as given for reforming or re-incorporating the company as a new entity since the salient feature of the company of the continuance existence of the company would remain in force even after completion of the procedure for the change of name of the company.

Topics: Company Name

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