Question

According to Section 4(2) of the Companies Act, 2013, the name stated in the memorandum shall not ______ or ______ too nearly to the name of an existing company registered under the Act or any previous company law.

• A. be identical with; resemble
• B. be dissimilar; resemble
• C. be desirable; resemble
• D. resemble; be desirable

Answer 1

Answer: (A)

be identical with; resemble

• Section 4 of the Companies Act, 2013 prescribes for memorandum of company which is a legal document which specifies the scope of business activities of the company and information about shareholding of the company. It contains six basic clauses related to the business activities of the company.
• Under section 4(2) of the act, the name stated in the memorandum shall not be identical with or resemble too nearly to the name of an existing company registered under this Act or any previous company law; or be such that its use by the company will constitute an offence under any law for the time being in force; or is undesirable in the opinion of the Central Government.