Changing the name of a limited company while it is in administration can be a complex process that requires careful consideration and adherence to legal protocols.
When a company enters administration, it is typically because it is facing financial difficulties and is seeking protection from its creditors.
During this period, the company is under the control of an appointed administrator whose primary responsibility is to salvage the business or ensure the best possible outcome for the creditors.
If there is a strategic or legal reason to change the company’s name during this period, the administrator has the authority to do so.
Additionally, the change must be registered with the appropriate regulatory body, such as the Companies House in the UK.
It’s essential to ensure that the name change does not mislead or deceive stakeholders or give a false impression of the company’s financial health or status
Can I change my company’s name during administration?
Yes, you can change a company’s name during an administration process. You will need to discuss the potential name change with the appointed insolvency practitioner, but this is often not something which would cause a problem and the request is likely to be agreed to.
It’s crucial to understand that renaming a company under administration involves a series of legal steps and thorough communication.
The primary reason for a company entering administration is financial distress, and during this phase, the insolvency practitioner holds significant control over the company’s decisions.
Changing a Company Name in Administration
f you’re curious about the feasibility of altering a company’s name either before or amidst the company administration process, the response is affirmative. Many businesses often opt to rebrand or rename themselves before initiating insolvency proceedings, and the administrative phase generally accommodates such changes.
Choosing to enter administration means selecting a licensed insolvency practitioner (IP) to oversee the process. This professional evaluates the company’s current standing and devises a strategy moving forward. Your first step would be to consult with the IP regarding a potential name modification for the business, but typically, such requests are met with little to no resistance.
Why change a company’s name during administration?
Several motivations might drive directors to alter their company’s name during administration. One potential reason could be to disassociate their ‘brand’ from existing debts and signal a fresh beginning.
Modifying a company’s name while in administration is typically a simple procedure, whether it’s done before, during, or after the process. With the guidance of the administrator, you can navigate the required steps with assurance.
How to change your company name in administration
Altering a company’s name is executed through either a written or special resolution, both necessitating a member vote. For the name change to be approved, at least 75% of shareholders (based on the value of shares) need to cast their vote in support, leading to the passage of a resolution.
This resolution, once signed, is forwarded to Companies House accompanied by the NM01 form, titled ‘notice of change of name by resolution’, and the associated fee. Presently, the fee stands at £10 for mail submissions and £8 for online filings.
Concurrently, the Articles of Association must be updated and dispatched to Companies House. It’s essential to recognize that the company’s name isn’t officially altered until Companies House provides a certificate of incorporation reflecting the name change.
Certificate of incorporation on change of name
Upon submitting form NM01 to change a company’s name, the mode of receiving the certificate of incorporation can vary. If you opted for an online submission, you’re likely to receive the certificate electronically.
Conversely, if you chose a postal submission, the certificate would be sent to you via the traditional mail system. Regardless of the method chosen, the processing time at Companies House is generally consistent, with most certificates being issued within an approximate timeframe of five working days from the date of receipt.
Conclusion
In conclusion, altering the name of a limited company, especially during administration, is a procedure that demands meticulous attention to detail and strict compliance with legal guidelines. Directors might opt for such a change to dissociate their brand from existing debts and signal a fresh start.
The process involves obtaining a majority vote from shareholders and submitting the necessary documentation, including from NM01, to Companies House. Depending on the submission method, the certificate of incorporation reflecting the name change can be received either electronically or through the postal system.
Should your business face financial challenges and you’re contemplating voluntary administration, or if you’re seeking details about renaming your company during administration, we can help. Simply complete the online enquiry form to arrange a meeting.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.