News from the desk of Ministry of Corporate Affairs (MCA)
July 30, 2021
Ministry of Corporate Affairs (MCA) on 22nd day of July, 2021 issued a commencement notification for the purpose of enforcing section 4 of the Companies (Amendment) Act, 2020 (Amendment Act) dated 28th September, 2020 which amends section 16 of the Companies Act, 2013 (Principal Act).
Consequently, another notification has been issued by MCA to insert a new rule, 33A after rule 33 in the Companies (Incorporation) Rules, 2014 (“Rules”) which provides allotment of a new name to the existing company under section 16(3) of the Principal Act wherein the Company which has been directed by the Central Government to change its name in case the proposed name is identical to an existing name, within a period of 3 months (earlier 6 months), has failed to do so.
The provisions of the newly enforced section 16 of the Principal Act & rule 33A of the Rules is explained as under:-
|Section 16(1)(b) of the Principal Act||If a name or a trademark applied by a company is similar or too identical to a registered trademark, the company shall change such name within a period of 6 (six) months from issuance of directions of Central Government||The said timeline has now been reduced to 3 (three) months.|
|Section 16(3) of the Principal Act||In case a company fails to comply with directions of the Central Government. given in the abovementioned provision, the Central Government shall allot a new name to the company. Going forward, in case the company wishes to change its name, it can do so by following the requisite procedures as laid down under the provisions of the Principal Act and Rules.|
|Rule 33A of the Rules||In case a company fails to comply with directions of the Central Government. given in the abovementioned Section 16, in such an event the Order of Regional Director Not Complied (ORDNC), year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company shall become the new name of the company. In the Annexure, after Form No.INC-11B, a new form has been inserted, which can be viewed at the below mentioned link.|
The complete text of the commencement notification may be viewed at below link:
The Rules shall be effective from 01st day of September, 2021.
The complete text of the Notification amending Rules may be viewed at below link:
The complete text of the Companies (Amendment) Act, 2020 (Amendment Act) dated 28th September, 2020 may be viewed at below link:-
Article contributed by:
Senior Associate- Legal
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