Name clause of Memorandum of Association
A company’s memorandum of association, often simply called the “Memorandum”, is the document that governs relations between the company and the outside world. It serves as the constitution of the company. It is a public document and may be inspected by anyone, usually at the public office where it is lodged. The structure and formulation of Joint Stock Company are made on the basis of the memorandum of association.
Memorandum of Association is the most important document as it treated as a constitution of the company. No company can legally undertake activities that are not contained in its Memorandum of Association. According to the Companies Act-1994 and the Section-11, Name clause is placed in it as per below:
Name clause: The name clause requires stating the legal and recognized name of the company. The company has the option to inky any name for it only if it does not bear any similarities with the name of an existing company. The company name must end with the word “limited” because the preparation of MOA is a legal requirement for limited liability companies only. The name of every private company will contain as its last words, the words “Private Limited” and every public company shall contain in its last word “Limited”. There are some certain provisions mentioned below:
(a) A company may adopt any name but it should not be identical to the name of an existing company registered with the registrar of the company. In the suit of the Osborn vs the Bank of U.S., the Judge said that “The name of the corporation is the symbol of its personal existence.”
(b) The name that had been prohibited by the Gazette of Government cannot be taken without the written concern of Government. The words like ROYAL, IMPERIAL, EMPIRE, ESTATE etc. cannot be used without the special permission of the government.
(c) United Nations or supplementary organization of United Nations or the name of World Health Organization (WHO) or the Logo or abbreviation of those names. The Secretary-General of United Nations or its helping organizations/agencies and Secretary General of World Health Organization (WHO), it would not be being taken without the written concern of those persons.
(d) It should not contain the names or part of the names of world bodies like UNO, WHO, World Bank etc.
