CORPORATE AND PROFESSIONAL UPDATE JANUARY 28,2016

CORPORATE AND PROFESSIONAL UPDATE JANUARY 28,2016

Amendments made to the The Companies (Incorporation) Rules, 2014, w.e.f. 26th January, 2016 [Notification dated 22nd January, 2016].

Highlights of these amendments, in brief, are :

Where the name proposed is —

• Not in consonance with the principal objects of the company [(ii) of clause (b) of sub-rule (2) of Rule 8]
• Vague [e.g. ABC Limited] or an abbreviated name [e.g. BMCD Limited (Bharat Mahesh Chandan and David)] [(x) of clause (b) of sub-rule (2) of Rule 8]
• Likely to produce a misleading impression regarding the scope or scale of activities [(xvii) of clause (b) of sub-rule (2) of Rule 8]

which, inter alia, were earlier considered undesirable, omitted.

Similarly, the requirement of —

• Changing its name where any company changed its activities [to bring it in line with changed activities]
  [sub-rule (3) of Rule 8]
• ‘No objection’, where the key word used in the name proposed is of another person than that of the promoter etc., from that another person, or
• ‘Proof of relation’ where the name includes the name of a relative [sub-rule (4) of Rule 8]

has been done away with.  In other words, the above are now not relevant for approval etc. of a name.

Regarding submission of documents —

• one more opportunity to remove defects or deficiencies, as intimated by the Registrar.  In other words, an applicant will now have, in all, three opportunities, in place of the hitherto before two opportunities.
  [clause (ba) to sub-rule (12) of Rule 36 inserted]

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