Question

Which of the following statements are correct?
(i) A company may change its Memorandum of Association after its incorporation.
(ii) Any change in the name of a company is subject to the provisions of Section 4 of the Companies Act, 2013.
(iii) The memorandum of a company shall state the name of the company with the last word “Limited” in the case of a public limited company.
(iv) A person may make an application to the Central Government for the reservation of a name set out in the application as the name to which the company proposes to change its name.

• A. Only (i), (ii), and (iii)
• B. Only (i), (ii), and (iv)
• C. Only (i), (iii), and (iv)
• D. Only (ii), (iii), and (iv)

Hint:

An application for name reservation is filed online using the RUN (Reserve Unique Name) service on the MCA portal, which is processed by the Central Registration Centre (CRC) under the Registrar's authority.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question evaluates the rules governing the alteration of the Memorandum of Association (MoA) and name-change procedures under the Companies Act, 2013.

Step 2: Key Principles and Statutory Provisions:
Sections 4 and 13 of the Companies Act, 2013, are the relevant statutory guides.
Section 4 lays out the mandatory clauses of the Memorandum, while Section 13 governs the alteration of the MoA.

Step 3: Detailed Explanation and Analysis:

• Section 13(1) allows a company to alter its Memorandum of Association at any time after its incorporation by passing a special resolution.
Therefore, statement (i) is correct.

• Any alteration regarding the company's name must strictly comply with Section 4 (the Name Clause provisions).
The new name must not be undesirable, misleading, or identical to existing companies.
Therefore, statement (ii) is correct.

• Section 4(1)(a) requires that the name of a public company must end with the word "Limited", and a private company with "Private Limited".
Therefore, statement (iii) is correct.

• Under Section 4(4), an application for the reservation of a name (either for a new company or for changing the name of an existing company) must be made to the Registrar of Companies (RoC), not directly to the Central Government.
Therefore, statement (iv) is incorrect.

Step 4: Final Answer:
Since statements (i), (ii), and (iii) are correct, the correct choice is Option A.