Page 61 - DCOM106_COMPANY_LAW

Company Law

Notes Key words Required Authorised
Capital ( )
1. Corporation 5 crores
2. International, Globe, Universal Continental, Inter-continental, 1 crore
Asiatic, Asia, being the first word of the name.
3. If any of the words in (2) above stated is used within the name 50 lakhs
(with or without brackets)
4. Hindustan, India, Bharat, being the first word of the name 50 lakhs
5. If any of the words at (4) above is used within the name (with 5 lakhs
or without brackets)
6. Industries/Udyog 1 crore
7. Enterprises, Products, Business, Manufacturing 10 lakhs

5.2.2 Publication of Name (s.147)

Every company shall,

(i) paint or affix its name and the address of its registered office and keep the same painted or
affixed, on the outside of every office or place of business in a conspicuous position in
letters easily legible and in the language in general use in the locality.
Department of Company Affairs has clarified that exhibition of its name in English alone,
without at the same time showing it in the local language will not be sufficient compliance
with the requirements of the Section.
The words ‘outside of every office’ do not mean outside the premises in which the office is
situated [Dr. H.L. Batliwala Sons & Co. Ltd. v. Emperor (1941) 11 Comp. Cas. 154 (Bom)].
Where office is situated within a compound, the display outside the office room though
inside the building is sufficient.
(ii) have its name engraven in legible characters on its seal.
(iii) have its name and address of its registered office mentioned in legible characters in all
business letters, bill heads, negotiable instruments, invoices, receipts, etc., of the company.
Penalty: If a company does not paint or affix its name and the address of its registered office in
the prescribed manner, the company and every officer of the company who is in default shall be
punishable with fine.
Also, every officer of a company or any person on its behalf who signs or authorises to be signed
on behalf of the company any bill of exchange, hundi, promissory note or cheque, etc., wherein
the name of the company is not mentioned in the prescribed manner, shall be personally liable
to the holder of such bill of exchange, hundi, promisory note, cheque, etc., for the amount
thereof unless it is paid the company. Personal Liability will, however, be not incurred in the
following cases:
The holder of a negotiable instrument, on which the company’s name has been incorrectly
stated, will not be able to enforce the personal liability under s.147(4) against the officer
concerned if the error was due to the holder’s own act [Durham Fancy Goods Ltd. v.
Michael Jackson (Fancy Goods) Ltd. and Another (1968) 2 Q.B. 839].

The word ‘Limited’ is abbreviated to ‘Ltd.’ (P. Stacey & Co. v. Wallis (1912) 28 T.L.R. 219.

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