It happens sometimes that the company is somehow registered with the name that they later on found is not compatible with their business or decides to change the name for any other reason.
Therefore the companies’ ordinance, 1984 describes the reasons for which a company may change its name. These reasons are mentioned below for the reference:
- The first reason that companies ordinance, 1984 describes for change of name is if due to any reason or by mistake the company get registered with the name which is in contravention of the requirements of the companies ordinance, 1984 then the law permits the company to change its name.
- If the company wants to extend is business whether in Pakistan or any other country and it is believed that the name they already have is not suitable for the business then they are permitted to change the name of the company registered in Pakistan.
- Sometimes it happens that the company is purchased by another company then in that case they are allowed to re name the company.
- If there is a change in the management of the company and new management thinks that this name is not suitable then they are allowed to change the name of the company as per their liking.
- If the company is planning a new business and the name of the company is not suitable for that new business then the company is allowed to change its name.
- If the name of the company for any reason has lost its reputation in the market then the company has the option to change its name.
- The law also states that any other suitable reason that the securities and exchange commission of Pakistan thinks considers to be just they can permit the company to change its name.
Furthermore in certain cases the registrar of the companies is also allowed to direct the company to change its name within 14 days of the notice.
PROCEDURE FOR CHANGE OF NAME OF THE COMPANY REGISTERED IN PAKISTAN:
The first step of change of name of the company is to make an application to the registar of the companies for confirmation of the new name proposed that it is available and allowed to be registered.
Once the confirmation is received from the registrar of the companies the next step is to send a notice to all members of the company, that the company intends to hold a General Meeting of its members for the change of Name. Such notice shall be send to members at least 21 days before the meeting.
On the day of the meeting the members shall pass a resolution by not less than ¾ majority that the shareholders agree to the new name of the company.
After passing the resolutions the next step is filing of the copy of special resolution along with Form-26 with the registrar and thus the process of change of name of the company is completed.
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