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Microlesson · 5-min read

Alteration of Name Clause in MOA

## Alteration of Name Clause in MOA (Sec 13 & Sec 16)

### Meaning of 'Alter' (Sec 2(3))

Alteration includes additions, omissions, and substitutions.

### Procedure for Name Change (Sec 13)

1. Special Resolution (SR) — Company alters MOA via SR.

2. CG Approval — A name change requires approval from the Central Government (powers delegated to the ROC).

  • A mere change of constitution (not name) does NOT need CG approval.

3. Prohibition on Defaulters

  • Companies that have defaulted in filing annual returns/financial statements or in repaying/paying matured deposits, debentures, or interest thereon CANNOT change their name.
  • Name change is allowed only after filing pending documents or settling debts.

4. ROC Entry

  • ROC updates the register with the new name and issues a fresh Certificate of Incorporation.
  • The name change is complete only on receipt of the certificate.

Example: Tata Sky Limited → Tata Play Limited.

### Rectification of Name by CG / RD (Sec 16)

The CG (now RD) can direct a name change if:

  • The name is identical or too similar to an existing company's name, OR
  • A registered trademark owner applies stating the name resembles their trademark.

Time limit for trademark owner application: Within 3 years of incorporation, registration, or name change.

### Steps After Direction

1. The company shall change its name within 3 months by passing an ordinary resolution (NOT SR).

2. After name change, notify ROC within 15 days with the CG's order.

3. ROC updates the Certificate of Incorporation and MOA.

### Failure to Comply with Direction

  • CG may allot a new name to the company.
  • ROC updates the register and issues a new certificate.
  • The company can later change the allotted name by following Sec 13 procedure.

### Quick Compare: Sec 13 vs Sec 16

AspectSec 13 (Voluntary)Sec 16 (Directed)
TriggerCompany decidesCG/RD direction
ResolutionSpecial ResolutionOrdinary Resolution
Notice to ROCStandard procedureWithin 15 days

Worked example

### Example 1

Example 1: Bright Foods Ltd. (registered 2024) closely resembles 'Bright Foods India Ltd.' (a registered trademark since 2010). The trademark owner files an application in 2026. Can the RD direct a name change? Answer: Yes — within 3 years of incorporation; RD can direct change. Company must change name within 3 months by passing ordinary resolution.

### Example 2

Example 2: ABC Ltd. defaulted in filing annual returns for 2 years. Can it change its name now? Answer: No. Defaulters are prohibited from changing name until pending filings/debts are settled.

⚠️ Common exam mistakes

  • Confusing Sec 13 (voluntary — SR) and Sec 16 (directed — ordinary resolution).
  • Forgetting that name change requires CG approval but a constitution change does not.
  • Missing the 3-year limit for trademark owner applications under Sec 16.
Reference: Sections 13 and 16 — Companies Act, 2013
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