A private limited company could decide to
change the name to accommodate the new corporate identity. There are set down
procedure for change of name of a company. The change affects a change in memorandum and article of association and name. Once a resolution is passed they need to
ascertain the availability of the name.
Procedure
of Change of Company Name (Act2013)
There are five clauses that need addressing
in the memorandum of association. You have the capital clause, name clause.
Others are liability clause, object clause and registration clause. The company
can alter any of the clauses.
To alter the clause the company needs to pass
a special resolution of the shareholders. This is applicable to all clauses
except capital clause. The capital clause can be altered at an ordinary
resolution of company shareholders.
Memorandum
of Association Clauses
- capital clause
- name clause
- liability clause
- object clause
- registration
clause
Registration
Office Clause
The registration office clause could refer to
situation clause. The situation clause is where jurisdiction of the State and
ROC where registered office of the company is situated.
The Object
Clause
The object clause is where the main activity
of the incorporated company is mentioned
The Liability
Clause and Name Clause
The liability clause is where the liability
of members is mentioned. The name clause
is where the name of the company is mentioned.
How a Special
Resolution is passed
To pass a special resolution the company
needs to convene a meeting. An issue of
notice to call the Board of Directors is enshrined in the companies Act 2013.
Procedure
to Change the Company Article of Association, Name
The board makes a resolution regarding
specified change. They then approve and issue notice of general meeting.
The notice of general meeting is issued to shareholders,
auditors and directors of the company. The general meeting is held and a special
resolution is passed. The required documents are filled with the appropriate company
registrars.
Step 1: Convene meeting of Board of Directors
Step 2: Issue of notice of General Meeting
Step 3: Hold General Meeting of Company Step
Step 4: Approval from Registrar of Companies
Once there is a special resolution of change
of name by the company’s shareholders the article of association needs to be
changed.
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