Question

Which of the following actions can be taken by a Registrar under Section 4(5) of the Companies Act, 2013?

• A. He can direct the Company to change its name within a period of 6 months after passing an ordinary resolution
• B. Take action for striking off the name of the Company from the register of Companies
• C. Order winding up of the Company on his own accord
• D. All of these

Hint:

Registrar can direct a company to change its name if it is too similar to an existing one.

Answer 1

The Correct Option is A

Step 1: Provision under Section 4(5).
If the name of a company is identical or too similar to an existing company or trademark, the Registrar has the power to direct the company to change its name.
Step 2: Clarification.
The Registrar does not have the power to strike off the name or wind up a company on his own under this section. His authority is limited to directing a name change.
Step 3: Conclusion.
Thus, option (a) is correct.