MCA has issued a notification on 22nd July, 2021, Commencement of Section 4 of Companies (Amendment) Act, 2020. As per notification, it will came into effect from 1st September 2021.

A. ANALYSIS OF NOTIFICATION – (Amendment in Section 16)

By this notification, the Central Government has appointed 01st September, 2021 as the date on which Section 4 of the Companies (Amendment) Act, 2020 i.e., amendment in Section 16 of the Companies Act, 2013 shall come into force.

Section 16 stands form “Rectification of Name of Company”

MCA Letter Business


If any owner of registered Trade Mark that the name is identical with or too nearly resembles to a registered trade mark of such proprietor under the Trade Marks Act, 1999, made to the Central Government within three years of incorporation or registration or change of name of the company,

The Central Government may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose.

NEW INSERSION – SECTION 16(3): If a company is in default in complying with any direction given under sub- section (1), the Central Government shall allot a new name to the company in such manner as may be prescribed and the Registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name, which the company shall use thereafter:

Provided that nothing in this sub-section shall prevent a company from subsequently changing its name in accordance with the provisions of section 13.

No other Amendment through Notification in the Month of July 2021.

Amendment THROUGH Circulars 

2. Clarification regarding spending of CSR Funds for Covid-19 Vaccination:

MCA vide Circular No.13/ 2021 dated 30th July 2021 had once again clarified that spending of CSR Funds by Corporate onCovid-19 vaccination for persons other than employees and their families, is an eligible CSR activity. The same can be covered under item (i) Promotion of Health care including preventive health care and also under item (xii) Disaster Management of Schedule VII to the Companies Act, 2013.

The above clarification is simply communication and appeal to the Corporate to spend on Covid-19 vaccination.

No other Amendment through Circular in the Month of July 2021.

Amendments in Rules

3. Amendment in Companies (Incorporation) Fifth Amendment Rules, 2021:

MCA has issued two notification on 22nd July, 2021 for Companies (Incorporation) Fifth Amendment Rules, 2021.

  • This Rules came into effect from 1st September 2021.

Effect of Amendment:

B. ANALYSIS OF NOTIFICATION – Two:  Insert new rule, “ Allotment of a new name to the existing company under section 16(3) of the Act”.

Pursuant to amendment in section 16 of the Act, the Central Government has incorporated Rule 33A in the Companies (Incorporation) Rules, 2014 for prescribing provisions for allotment of a new name to the existing company under section 16(3) of the Act.

This rule shall be applicable in the case Company fails to change its name after direction u/s 16 of Companies Act, 2013.


In case a company fails to change its name or new name, as the case may be, in accordance with the direction issued under sub-section (1) of section 16 of the Act within a period of three months from the date of issue of such direction, the letters “ORDNC” (which is an abbreviation of the words “Order of Regional Director Not Complied”), the year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company shall become the new name of the company without any further act or deed by the company, and the Registrar shall accordingly make entry of the new name in the register of companies and issue a fresh certificate of incorporation in Form No.INC-11C:


If Company has already filed INC 24 and it is pending for approval even after expiry of three months from the date of issuance of direction by ROC, then Central Government shall not change the name of the Company by itself.


A company whose name has been changed under sub-rule (1)

    • shall at once make necessary compliance with the provisions of section 12 of the Act like (Change of Name on Letter Head, Boards, Invoices, other documents etc.) and
    • the statement, “Order of Regional Director Not Complied (under section 16 of the Companies Act, 2013)”

shall be mentioned in brackets below the name of company, wherever its name is printed, affixed or engraved.

Example: Name shall be mentioned in documents like this:

ABC Private Limited

(Order of Regional Director Not Complied (under section 16 of the Companies Act, 2013)

No other Amendment through Amendment in Rules in the Month of July 2021.


Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

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