TechCom Inc and Geo Industries Inc join to form a new entity. This is referred to as a merger. The stocks of both companies are surrendered, and new equity shares are issued. When a company in a merger changes its name, this does not affect that particular company’s rights and obligations. When a company needs to change its name, it involves altering the Memorandum of Association and Articles of Association of the company.
There is a procedure that should be followed for a company to change its name. Firstly, a meeting of the Board of Directors is held on deciding the new name to be given to the company. When the Board of Directors decides on the company’s new name, an application is made to the registrar of companies. The registrar, ill upon approval, issued the company a new registration certificate reflecting the company’s new name.
Stock split refers to the process where a company splits outstanding shares into more shares. This reduces the price per share.to make changes regarding stock split and the company’s annual meeting, an application for amendment of the company’s articles of association is created. This application is made to the companies’ registrar within 15 days after a resolution by a general meeting held.