Company’s name
According to S.119 Corporations Act (2001), a company comes into existence on registration. In order to complete the process, the company must lodge a application form 201 and determine an available company name. However, there are many restrictions on naming the company.
For example, let’s assume the current issue is whether ‘Bakers Delight’ or ‘The Baker’s Dozen’ named by shareholders are available to be registered with Australia securities an investment commission. According to the Section 147 Corporations Act, the name is available to a company unless the name is identical or unacceptable. See “Sumitomo Mitsui Banking Corporation v Sumitomo Mitsui Financial Group Pty Ltd. Consequently, both names are not available in regard to S.147 (1) (b), where the names are ‘identical (under rules set out in the regulations) to a name that is held or registered on the Business Names Register in respect of another individual or body who is not the person applying to have the name’. In fact, the ASIC Business Name Register suggests there are 6 similar names with ‘Bakers Delight’ and another 10 similar names with ‘ Baker’s Dozen’. (The definition of a business name register can be found in S.22 Business Names Registration ACT).
Besides the name being ‘ identical’, S.147 (1) (c) also introduced the term ‘unacceptable’ company names. Which is further explained in Business Names Registration Act S.27 undesirable name and s.28 restrictive words and expressions. The Business Names Registration (Availability of Names) Determination 2012 has illustrated some examples of unacceptable names. For instance, it should not include any offensive words, the name should not imply a non-existing connection to the government or Crown, and there should not be infringement of copyright. Moreover, if this ‘NewCo’ is a limited private company, the proprietary limited ‘Pty Ltd’ must be shown in the end of the company’s name’.
In conclusion, the registered name must comply with all rules listed above.
No comments:
Post a Comment