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Microlesson · 5-min read

Alteration of Memorandum — Name Clause [Section 13 & 16]

# Alteration of MOA — Name Clause (Sections 13 & 16)

## General Rule — Alteration of MOA [Section 13]

A company can alter its MOA by:

1. Passing a Special Resolution (SR), and

2. Filing it with the ROC.

Special note for Section 8 companies: Prior approval of the Central Government (power delegated to Regional Directors) is also required.

## Change of Name of Company [Section 13]

Procedure:

1. Pass a Special Resolution.

2. Obtain approval of the Central Government (power delegated to ROC) in Form INC-24.

3. File CG approval with ROC.

4. ROC enters the new name in the Register of Companies and issues a fresh Certificate of Incorporation in Form INC-25.

### Exceptions where CG approval is NOT required

  • Change relates only to the word 'Private' — i.e., conversion from Public ↔ Private company.

### When name change is NOT allowed

  • Company has not filed annual returns or financial statements, OR
  • Company has failed to pay deposits/debentures/interest.
  • Once the default is made good, name change is permitted.

## Rectification of Name [Section 16]

The Central Government (power delegated to Regional Director) may direct rectification:

Initiated by CGInitiated by Trademark Owner
Suo motu (on its own)On application by proprietor of registered trademark, within 3 years of registration/change of name

When? If the CG finds that the name is identical or too nearly resembles an existing company name or registered trademark.

Procedure for the company:

  • Change name within 3 months from CG direction (by passing Ordinary Resolution).
  • Notify ROC (with CG's order) within 15 days of change.
  • ROC carries out necessary changes in Certificate of Incorporation and MOA.

Default: If company does not comply, CG itself allots a new name; ROC enters and issues fresh certificate.

## Effective Date

Any alteration to the name clause is effective only after issue of fresh certificate by ROC.

Worked example

### Example 1

Q: Zomato Ltd. wants to change its name to Eternal Ltd. Outline the procedure.

A:

1. Reserve the new name 'Eternal Ltd.' with ROC.

2. Pass an SR for change of name.

3. Obtain CG approval in Form INC-24.

4. File CG approval with ROC.

5. ROC will issue a fresh Certificate of Incorporation in Form INC-25. The change is effective only on issue of this certificate.

### Example 2

Q: Alpha Pvt. Ltd. wants to convert into a Public company and remove 'Private' from its name. Is CG approval required?

A: No — when the change in name relates only to the addition or deletion of the word 'Private' (incidental to conversion), CG approval is not required for the alteration of MOA.

### Example 3

Q: ABC Ltd. (registered in 2024) finds that XYZ Ltd. (registered in 2022) has a name closely resembling its registered trademark. Can XYZ be forced to change its name?

A: Yes. As trademark proprietor, ABC can apply to CG within 3 years of XYZ's name registration/change. CG (Regional Director) may direct XYZ to change its name within 3 months by passing an OR.

⚠️ Common exam mistakes

  • Stating that Special Resolution is required for rectification of name under Section 16 — only an Ordinary Resolution is needed.
  • Forgetting that CG approval is NOT required when only the word 'Private' is being added or removed.
  • Missing the 3-year limitation period for trademark proprietors to apply for rectification.
  • Saying ROC approval — actually it is CG approval (delegated to ROC in change cases; delegated to Regional Director in rectification cases).
Bare-Act text Section 13 & 16 · Companies Act, 2013 · click to expand
A company may, by a special resolution and after complying with the procedure specified in this section, alter the provisions of its memorandum. No alteration in the name shall have effect except with the approval of the Central Government in writing.
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