# Rectification of Name (Section 16)
Section 16 deals with situations where a company's registered name is identical with or too nearly resembles (a) the name of another existing company, or (b) a registered trade mark.
## Two Routes for Rectification
### Route 1: Central Government Acts Suo Motu
- The Central Government, on its own opinion, gives directions to the company to rectify its name where the registered name is identical with or too nearly resembles the name of an existing company.
- The company shall change its name within 3 months from the date of CG's notice by passing an ordinary resolution.
### Route 2: Application by Registered Trade Mark Proprietor
- The registered proprietor of a trade mark may make an application to the Central Government claiming that the company name is identical with or too nearly resembles his existing trade mark.
- Such application must be made within 3 years of incorporation or change of name of the company.
- CG then directs the company to rectify its name based on this application.
- The company shall change its name within 3 months from the date of CG's notice by passing an ordinary resolution.
## Notice of Change to Registrar
Where a company changes its name or obtains a new name (under Section 16), it shall, within 15 days of such change, give notice to the Registrar along with the CG's order. The Registrar carries out necessary changes in the Certificate of Incorporation and the Memorandum.
## Consequences of Default
If the company makes default in complying with the CG's direction:
### Allotment of New Name by CG
- The Central Government shall allot a new name to the company in such manner as may be prescribed.
- The Registrar enters the new name in the register in place of the old name.
- A fresh certificate of incorporation with the new name is issued, which the company shall use thereafter.
- However, the company can subsequently change this allotted name following Section 13 procedure.
### Penalty for Default
- Company: Fine of ₹1,000 per day during which the default continues.
- Every officer in default: Fine not less than ₹5,000 but may extend to ₹1,00,000.
## Summary Table
| Aspect | Detail |
|---|---|
| Time to change name after CG notice | 3 months |
| Resolution required | Ordinary resolution |
| Trade mark proprietor's window to apply | Within 3 years of incorporation/change of name |
| Notice to ROC after change | Within 15 days |
| Default fine on company | ₹1,000 per day of default |
| Officer in default fine | ₹5,000 to ₹1,00,000 |