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Revoking License of Section 8 company
Corporate & Other Laws
What is the reason behind On revoking License of Section 8 Company, the registrar adding Limited or Private Limited in its name?
Answers (3)
If the license of a Section 8 company is revoked by the Registrar of Companies, the Registrar can add the words "Limited" or "Private Limited" to the name of the company. This is done to prevent any misuse of the name of the company after its license has been revoked and to indicate that the company is now required to comply with all the provisions applicable to other companies under the Companies Act, 2013.
Sugam SM
If they perform against their objects mentioned in license issued by CG
If a Section 8 company performs activities that are not in line with the objectives mentioned in its license, the Registrar of Companies can take legal action against the company, which may include issuing a show-cause notice, imposing penalties, fines or even revoking the license of the company. It is, therefore, important for Section 8 companies to comply with the provisions of the Companies Act, 2013, and ensure that their activities are in line with the objectives mentioned in their license to avoid any legal action by the Registrar of Companies.
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