MCA Amends Rules on Striking Off Companies: New Indemnity Bond Requirement for Government Companies [Read Notification]

On 31st December 2025, the Ministry of Corporate Affairs (MCA) pursuant to the powers granted under Section 248 and Section 469 of the Companies Act, 2013 enacted a procedural amendment to the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2025.

Rule 4(3) of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, has been altered by inserting certain conditions for making an application to remove a company’s name from the register maintained by the Registrar of Companies. Rule 4, inter alia, now requires the furnishing of an indemnity bond to safeguard the interests of the Government and other stakeholders against any liabilities that may surface after the company is struck off.

By inserting an additional proviso to Rule 4(3), the MCA has introduced a specific compliance mechanism for Government Companies, including their subsidiary companies. The amendment applies in cases where one or more directors of the company have been appointed or nominated by the Central Government or a State Government.

Under the newly inserted proviso, the indemnity bond is required to be furnished in Form STK-3A and must be executed on behalf of the company by an authorised representative of the concerned Government. Such authorised representatives must be not below the rank of Under Secretary or an equivalent officer and must belong to the administrative Ministry or Department of the Government of India or the State Government, as the case may be.

The amended rules have come into force with immediate effect, and will apply to all strike-off applications filed by Government Companies thereafter.

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