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Choice of Name - Name Clause:

However, it might be relevant to note that the registrar of English companies, pursuant to his powers under the corresponding section of the English Companies Act 1948, issued Practice Note No C 186 in which he stated that he would normally regard a proposed name as undesirable if:

I. It is too like the name of an existing company.

II. It is misleading, for example, if the name of a company likely to have small resources suggests that it is going to trade on a great scale over a wide field.

III. It suggests some connection with the crown or members of the Royal Family or royal patronage, including names containing such words as "Royal", "King", "Queen", "Princess" and "Crown".

IV. It suggests connection with a government department or any Municipality or other local authority or any body incorporated by Royal Charter or by statute or with the government of any part of the Commonwealth or of any foreign country.

V. It contains the words "British", unless the undertaking is British-controlled and entirely or almost entirely British-owned and is also of substantial size and importance in its particular field of business.

VI. It includes "Imperial", "Commonwealth", "National", "International", "Corporation", "Co-operative", "Building Society", "Bank", "Bankers", "Banking", "Investment Trust", or "Trust", unless the circumstances justify the inclusion.

VII. It includes a surname which is not that of a proposed director, unless the circumstances justify the inclusion.

VIII. It includes words which might be trade marks, unless a trade mark clearance has been obtained.

It is probably that the registrar of Companies in Kenya is guided by the above rules, modified mutatis mutandis, when deciding on the desirability of any proposed name.

Business Law & Ethics, Finance

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