21 July 2006
Who are you doing business with?
The introduction of the Companies Law Reform Bill means that the Business Names Act will be amalgamated with the Companies Act. However the basic requirements will remain unchanged, which, essentially, require businesses to make it clear on their stationary who they are.
Nigel Maud of Surrey-based Hart Brown solicitors explains, “When you deal with Coca Cola, Marks and Spenser and Microsoft, you know exactly who you are doing business with. But this may not be so obvious with others, especially when a company trades under something other than their incorporated name.”
People have a right to know who they are dealing and contracting with. If they do not know this, they may not be held to the agreements made.
The Companies Act 1985 and The Business Names Act requires a company to display its actual incorporation name, not just its trading name, on documents such as business letters, formal notifications, bills of parcels, invoices and receipts. This information must also be displayed outside its place of business.
Companies are not the only businesses affected by the requirements of these Acts. Partnerships or Sole Traders who do not trade under their actual names also have to comply. Details of who is being dealt with must be shown in the same way a company name would be when it is trading as something else.
Failure to display the information required is a criminal offence and could mean that any contracts entered into are void.
Therefore, before you order your stationary, make sure that you have included all the information that is legally required. And for those who are in doubt as to whom they are dealing with, take a look at the company’s stationary to see if they are meeting their obligations. If not, ask the company concerned, check their website, or ask Companies House if they can help.
For further information contact Nigel Maud, Commercial Business, on 01483 887766.