In today’s Friday read we will be discussing the names of companies.
Just like children, companies are named from inception in order to be recognized and easily identified. A company name is often the first impression with customers and has the power to influence positively or negatively depending on the name. The name of a company can be featured on all of your products, packaging, or services which will be the yardstick for the entire brand strategy.
Names usually tell us a story as to the type of company, the kind of business the company may engage in, and sometimes the geographical location of the company.
The new Company’s Act,2019 (“Act 992”), in an effort to improve the ease of identification states that the last word of the name of companies must be as follows:
- For a Private Company limited by shares, the last word of the name shall be “Limited Company “or “LTD”
- For a Public Company limited by shares, the last word of the name shall be “Public Limited Company” of “PLC”
- For a Company Limited by Guarantee, the last word of the name shall be “Limited by Guarantee” or “LBG”
- If you are a Public Company Unlimited by Shares, the last word of the name shall be Public Unlimited Company or “PUC”
Hence, companies that were incorporated after the enactment of Act 992 have the above-listed suffixes to their names. However, companies incorporated before the enactment of Act 992 which do not have these suffixes are required by the Office of the Registrar of Companies to change their names in accordance with Act 992.
It is important to note that the name of the company cannot be changed just on a whim. It must be done by a special resolution. We are sure that you are probably wondering what a special resolution entails. Stay tuned for our next Friday Read same time next week for our discussion on special resolutions.