The MCA, by its Notification dated July 22, 2021, notified Section 4 of the Companies (Amendment) Act, 2020, which amends Section 16(1)(b) and 16(3) of the Companies Act. The amended provisions reduce the time period from six months to three months within which a company has to change its name, if in the opinion of the Central Government the name is identical or too nearly resembles an existing trademark (pursuant to an application by a registered proprietor of a trademark to the Central Government within three years of incorporation or registration or change of name of the company). The amendment further removes the penalty which was applicable for a contravention of Section 16(1) of the Companies Act, and instead provides power to the Central Government to allot a new name to the company which has failed to change its name pursuant to the direction of the Central Government. The appropriate Registrar of Companies will then issue the company a fresh certificate of incorporation with the new name. The allotment of name by the Central Government will not prevent the company from subsequently changing its name in accordance with the Companies Act.