A company entered into an agreement before the name is getting changed.Is it required to renew the agreement in the name of new company or we can continue with the old agreement ? is it valid?
please clarify
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Validity of agreement
Replies (6)
yes it is completely valid but advisable to make new one as there will be no confusion in future
If the company is incurring expenditure based on old agreement whether the company can claim the expenditure in books.
Dear Vijeesh
In the given case company can cliam as expenditure without changing that agreement.
There is no need to change the agreement. Please also refer Section 23(3) of Companies Act which is very clear on this issue.
There is no need to renew tha agreement with new name, company can claim the expenditure with old name,
As section 23 (3) The change of name shall not affect any rights or obligations of the company, or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the company by its former name may be continued by or against the company by its new name.
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