Rules related to incorporation of companies changed

The government has amended the rules concerning to the incorporation of companies which comes under the Companies Act, 2013. From 1^st September, these changes will come into effect.

Highlights

• Companies Act, 2013, is being implemented by the corporate affairs ministry and they have amended the Companies (Incorporation) Rules, 2014.
• Changes have been made to the Section 16 of the Act which relates to the allotment of a new name to an existing company.
• Section 16 relates to rectification of the name of a company which is subjected to various conditions, including that the government may direct the name changing a firm’s if it is identical with the name of another existing company. It has to be implemented by the concerned company within three months.
• New rules have been introduced by the ministry of Corporate Affairs wherein the ‘ORDNC’ (Order of Regional Director Not Complied) tag would be attached to a company’s name that does not comply with name changing direction within the time period.

Order of Regional Director Not Complied

For the companies not complying to the name change directions within the specific time period, the letters ORDNC (Order of Regional Director Not Complied), the serial number, the year on which the direction was passed and the Company’s existing Corporate Identity Number (CIN) will become the company’s new name.

Month: Current Affairs - July, 2021