Alteration of Name Clause:

1. Change of Name at the instance of the Company.

• Bypassing a special resolution at a general meeting & with the written approval of the Central Govt as was held in the case of goldsmith ltd v. Baxter.
• However, no approval of Central Govt has required if a change in name involves only addition or deletion of the word private.
• In the case of kerloskar proprietary ltd v. Kirloskar dimensions ltd, it was held that a company has a right to use its own name or ancestral name.

2. Change upon a direction from central government.

• On the direction of the central government, the Co may change its name within a period of 3 months from the issue of such direction by passing an ordinary resolution & by obtaining the approval of central govt in writing.
• It may also change its name, where an application has been made to the central govt by a registered proprietor of a trade mark in the opinion of the central government the name is identical with or too nearly resembles a registered trademark of such proprietor as was held in the case of GMP Pharmaplan  Ltd v. Regional Director, Ministry of Corporate Affairs.
• Rule 2(25) change of name shall not be allowed to a Co which has defaulted in filing annual returns or financial statements or any document due for filing with the registrar or which has defaulted in repayment of matured deposits or debentures or interest on deposits or debentures.
• When a Co obtains a new name under s 16(1) it shall within a period of 15 days give notice to the registrar along with the order of the central govt .
• Default is punishable with a fine of 1000/- every day to the Co & for every officer, a fine of 5000/but can extend to 1,00,000.

Effect of change of name

• Shall not affect any rights or obligations of the Co.
• By change of name, the constitution of the company does not change as was held in the case of Economic Investment Corporation Ltd v. CIT.
• The Co shall file with the registrar the special resolution passed by the Co & the approval of the Central Govt.
• The Registrar shall enter the new name in the Register of Companies in place of old name & issue a fresh certificate of Incorporation, with the new name & change in the name shall be complete & effective only on the issue of such a certificate.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.