Notification no. GSR 940(E); Dated: 31.12.2025
1. Introduction
The Central Government has amended the rules governing the removal of company names from the Register of Companies through Notification No. GSR 940(E), dated 31 December 2025. The amendment introduces a specific procedural requirement for Government Companies and their subsidiaries.
2. Amendment To Removal Of Names Rules
The notification brings into effect the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2025. These amendments modify the existing framework under which companies may apply for or be subjected to removal of their names from the Register of Companies.
3. Special Provision For Government Companies
As per the amended norms, where the company concerned is a Government Company, including its subsidiaries, additional safeguards have been prescribed. The amendment specifically addresses cases involving directors appointed or nominated by the Central or State Government.
4. Indemnity Bond Authorisation Requirement
The rules now mandate that the indemnity bond in respect of one or more Government-appointed or nominated directors must be executed by an authorised representative not below the rank of Under Secretary or equivalent. Such authorisation must be from the concerned administrative Ministry or Department of the Government of India or the State Government, as applicable.
5. Conclusion
The amendment strengthens accountability and procedural clarity in cases involving Government Companies seeking removal of their names. Stakeholders should ensure compliance with the revised indemnity bond requirements while initiating name-removal applications under the amended rules.
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