Like human individuals, businesses can have their names changed. Official name changes require that the business fulfils a number of criteria, as is the case with persons. So if you’re going to change your company’s name, you’ll have to know the right steps to take, as stipulated by the law.
A business name can be changed for a number of reasons. It could be that the name is very similar to an existing trademark– so similar that the two can be (or have been) mistaken for each other. Or legal action against a company may end with a court ordering the company to change its name.
Another instance that may warrant a name change could be when the Corporate Affairs Commission (CAC) erroneously allows a company to register an already existing business name (or one that’s almost identical to an existing name). Businesses may also choose to change their name for internal reasons.
Whatever triggers the need to go with a new name, there are legally recognized steps to implementing such a change. This article takes you through those steps, so you know what exactly you need to do if you have to deal with such a situation.
Steps To Changing Your Company’s Name
These are the steps a business should take in order to change its name.
Step 1: The company’s Board of Directors should hold a meeting, at which they will pass a resolution that authorizes the company’s change of name and directs the company secretary to initiate the process leading up to the change.
Step 2: The secretary will conduct a new name availability search with the Corporate Affairs Commission (CAC) to find out if the proposed new name is available. If it is, the secretary will take steps to reserve the name.
Step 3: The secretary will call for a general meeting of the company, informing prospective attendees of the purpose of the meeting: the intention to pass a Special Resolution to change the company’s name.
Step 4: The company’s general meeting will be held after 21-days notice. If the Special Resolution to change the company’s name is passed, a specified set of documents will be submitted to the CAC.
These documents are:
- A notice of the Special Resolution.
- A letter addressed to the CAC asking for its approval to change the company’s name.
- The company’s Memorandum and Articles of Association which has been altered to include the new name.
- The company’s original Certificate of Incorporation.
Step 5: The CAC will advertise the change of name in its official Gazette. The aim of this step is to publicize the name change so that any entity with reasonable objections to it (such as a close similarity of the new name to an already existing name or trademark) will make their objections known to the CAC.
Step 6: If there are no objections to the change of name, the CAC will issue the company a new Certificate of Incorporation, which will contain its new name. However, the RC No. will remain the same.
What To Do After Changing Your Company Name
The change in company name should be reflected on all of your business’s official documents going forward. Persons or organizations who engage with the company should also be informed of the change as soon as possible.
It’s also advisable that you advertise your business’s change of name in a newspaper that has nationwide reach, especially if the business has transacted over a considerable geographical distance or has built a well-known brand with which its old name is associated.
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