Overview of a Shareholders’ Resolution to Change Company Name
What is a Shareholders Resolution to Change Company Name?
A Shareholders’ Resolution to Change Company Name is a written record of the company’s decision to change its name.
A Shareholders’ Resolution to Change Company Name is a special resolution (i.e. requires the approval of more than 75% of shareholders attending and voting on the matter).
After using a Shareholders’ Resolution to Change Company Name, remember to file the relevant form to update the relevant government department or registry within the statutory time limit.
What is the process for this shareholders’ resolution?
There are two options when using a Shareholders’ Resolution to Change Company Name:
-if a general meeting (i.e. a meeting of shareholders) is convened to change company name, use a Minutes of a General Meeting to Change Company Name; or
-if the company has only one shareholder or the shareholders choose to pass the resolution by way of a written resolution, use a Written Resolution to Change Company Name.
Who can change a company name?
One can change a company name if it follows all the company rules and regulations. Basically, there are two ways in which a company name can be changed. Ie;
By special resolution of the members
To change a company name using a special resolution of the members requires the approval of more than 75% of shareholders attending and voting on the matter. To know whether there is a majority, all the individual votes should be counted rather than counting the members who favor the change of name.
By the board of directors resolution
Alternatively, the company name can also be changed by the board of directors by calling a board of meeting or providing the name change in writing.
What happens when you change a company name?
After approving a shareholder’s resolution to change company name, the company house will send a new certificate with all the details about the company including the date of registration, the new name of the company. Changing a company name will not change the operation of the company and its functions. All the staff and partners will remain the same; so it is very important to notify the customers and suppliers about the change in the company name and to update the bank account details.
What right do all common shareholders have over a company?
The main rights that all common shareholders have over a company are:
Voting Rights: Every shareholder has a voting right to elect the directors in the company annual meeting. If they are not able to vote physically, they can do so by using a proxy and mail in their vote.
Ownership in a portion of the company: Every shareholder has some amount of ownership in the company. However, the influence of shareholders over a company entirely depends upon the number of shares he/she acquires. They also have a claim on the portion of assets owned by the company.
Right to dividends: Dividends can be defined as the sum of money paid to shareholders by the company out of its profits. So, whenever the company makes some profit all the shareholders have the right to get the dividends out of that profit.
Right to transfer ownership: All the common shareholders have the right to sell their shares to another person according to their needs. When they sell their shares, automatically the ownership gets transferred to another person.
Right to information: Shareholders are also entitled to the right to information such as examining basic documents like company bylaws and minutes done by board meetings.
Changing a company name should not be driven by personal interest; it should be more focused on achieving business goals. There are always good reasons to change a company name. For example, if a company enters into a new market or launches a new product then it might be necessary to change the company name to align with the new products. Changing a company name can help redefine company goals and accelerate its growth.
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Along with this document, make sure you see these other templates in our library:
- Shareholder Agreement
- Option Agreement
- Employee Option Repurchase Agreement
- Share Appreciation Rights Plan
- Share Option Plan
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