# Cancellation of Name — Consequences of Wrong/Incorrect Information
## Trigger
After reservation of a name, it is found that the name was applied for by furnishing wrong or incorrect information.
## Two Scenarios
### Scenario A: Company NOT Yet Incorporated
- The reserved name shall be cancelled.
- The applicant is liable to a penalty up to ₹1,00,000 (one lakh rupees).
### Scenario B: Company Already Incorporated
The Registrar may, after giving the company an opportunity of being heard, take any one of the following actions:
| Option | Action |
|---|---|
| 1 | Direct the company to change its name within 3 months, after passing an ordinary resolution |
| 2 | Take action for striking off the name from the register |
| 3 | Make a petition for winding up of the company |
## Key Points
- The Registrar must give an opportunity of being heard before acting in Scenario B.
- For mandated change, only an ordinary resolution is needed (NOT special resolution).
- Penalty of ₹1 lakh applies only when company is not yet incorporated.