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ACCA Applied Skills · Corporate and Business Law (Global) · The formation and constitution of a company

Amara and Bola wish to register a private company limited by shares and propose to call it 'Greenfield Holdings Limited'. An existing company on the register is already named 'Greenfield Holdings Limited'. What is the general position on the proposed name?

The name will normally be refused. Registries do not allow a company to be registered under a name identical to one already on the register, whoever the founders are and whatever the business, because this would confuse the public.

  1. AIt will normally be refused because it is the same as a name already on the registerCorrect
  2. BIt will be accepted because the founders are different persons
  3. CIt will be accepted if the new company's business differs from the existing company's

Explanation

Company registries generally refuse a name that is the same as, or too like, one already on the register. The identity or business of the founders is irrelevant, because the register protects the public from confusion between entities. Option 2 is wrong because different founders do not remove the conflict. Option 3 is wrong because a difference in business activity does not cure an identical name.

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