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CS Executive · Company Law and Practice · Memorandum and Articles of Association and its Alteration

Kaveri Pharma Pvt Ltd converts into a public company and its only change in name is deleting the word 'Private'. Which statement is correct about Central Government approval for this name change?

Central Government approval is not necessary when the only change in the company's name is the deletion or addition of the word 'Private' because of conversion from one class of company to another. The special resolution is still filed with the Registrar.

  1. AApproval is required in writing, as for any other name change
  2. BApproval is not necessary, because the only change is deletion of the word 'Private' consequent on conversionCorrect
  3. CApproval is required only if the paid-up capital exceeds a prescribed limit
  4. DApproval is not necessary, and the special resolution need not be filed with the Registrar either

Explanation

The proviso to section 13(2) says no approval is needed where the only change in name is deletion or addition of the word 'Private' consequent on conversion of one class of company to another. However, the special resolution must still be filed with the Registrar under section 13(6), so the last option is wrong.

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