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Law for business report - Essay Example

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In the case of the name change from Toys4U to Toys4Everyone, one must first look to the companys articles of association to define the internal procedures by which the name change will come about. Every company will have different articles of association (Companies Act 2006…
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Law for business report

Download file to see previous pages... The second question deals with the name itself. Is the name Toys4Everyone prohibited by law? If the use of the name Toys4Everyone would be considered to be an offence of offensive, or if it contained “other sensitive words,” then the name would be prohibited. (Companies Act 2006 5(1)(53)(a)(b); Companies Act 2006 5(1)(55)(1)). To qualify as a sensitive word, the word would have to be one that is regulated by Secretary of State. (Companies Act 2006 5(1)(55)(1)). Likewise, if the name is likely to give the impression that the company is associated with Her Majestys Government, the local authority or any public authority, then they would not be able to use the name, either. (Companies Act 2006 5(1)(54)(1)(2)).
In this case, Toys4Everyone would not seem to fall under any of the above. It would not give the impression that the toy company is associated with government, it is not offensive and likely would not be considered to be an offence to use the name, and it is doubtful that it would be a sensitive word that would be subject to regulation by the Secretary of State. So, there does not seem to be a legal issue there.
Moving on through the Companies Act, and there is a provision that states that the name chosen by the company must not be the same or too similar to another that is registered with the registrar. (Companies Act 2006 5(3)(66); Companies Act 2006 5(3)(67)). If the name is the same as another, then they cannot use the name. If the name is too similar to another, then the Secretary of State can order them to change their name. (Companies Act 2006 5(3)(67)). This is one legal challenge that may face the Board of Directors, if in fact there is another company with the name of Toys4Everyone, or if there is another company that has a very similar name as Toys4Everyone.
If there is another company with a similar name on the registrar, then they ...Download file to see next pagesRead More
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