Name Change Special Resolution
In order to change the name of a company a special resolution is required stating that the alteration is to occur. The proposal requires at least 75% of the eligible votes to be cast at a meeting in favour of the motion.
A company may also obtain the signatures of all of the shareholders stating their acceptance of the proposed new name.
Changing the Name of Ready Made Companies
Some company formation agents offer the change of name facility in addition to their normal incorporation services. This is particularly the case where they sell ready made companies.
At the time of setting up a ready made company, the person incorporating it would obviously not be aware of who it would eventually be sold to and what their choice of name would be.
They therefore choose random names for the companies. At a later stage when one is being sold, the purchaser may request that that the name be changed to one more appropriate to their business or just to another they feel more comfortable with.
Changing the Name Before Nominees Resign
The change of name in such circumstances can be effected either before or after the nominee director, secretary and subscriber (shareholder) have resigned and the new owners appointed.
Generally it is easier for the formation agent to carrying out the process because their nominees would occupy the position of shareholder and therefore have the required 75% majority to pass the special resolution.
If the change of name is carried out after the original subscribers have transferred the shares to the purchasers, then the new owners must sign the special resolution.
The additional administration involved by having the purchasers involved can slow the process down, simply because the documents might have to be sent by post to the new owners instead of directly to Companies House.
Change of Name Fees
In the above cases, company formation agents may charge more than the Companies House fee of £10 for their service. There is a same day name change service also available whereby documents received by 11am will be processed that day for a fee of £40.
