Qi Youngistanpvt. Ltd., the famous group of promoters submitted an application to the registrar of the
company for the approval of the name for shoe manufacturing company. They choose 'Nike Ltd as the name
of the company so as to increase the sales because Nike was a well known and well established brand.
a) Who selects the name of the company?
b) Would the proposed name be accepted by the registrar? Give reason.
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Answers
Answer:
(a) Promoter- The promoters have to select a name for the company and submit an application to the registrar of companies of the state in which the registered office of the company is to be situated, for its approval. The proposed name may be approved if it is not considered undesirable.
(b) No, the selected name of the company is not accepted. Reason is name of the company should not be identical or similar or too close resembling the name of existing company. In this case name is too closely resembling the name of existing company Nike. According to the name clause the name of a company should not be identical or resembling the name of an existing company and should not violate the provisions of 'The Emblem and Names (Prevention of Improper Use) Act, 1950. Three names, In order of their priority are given in the application to the Registrar of Companies so that alternative name may be allotted in case the first preference does not fulfill the name clause.
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