preferred name is misleading, say, to suggest that the Name Clause A name is considered undesirable in the following cases: (a) If it is identical with or too closely resembles the name of an existing company (b) If it is misleading. It is so considered if the name suggests that the company is in a particular business or it is an association of a particular type when it is not true (c) If it is violative of the provisions of ‘The Emblem and Names (Prevention of Improper Use) Act , as given in the schedule to this Act. This schedule specifies, inter alia, the name, emblem or official seal of the UNO and its bodies like WHO, UNESCO etc. Government of India, State Governments, President of India or Governer of any State, the Indian National Flag.
The Act also prohibits use of any name which may suggest patronage of Government of India, or any state government or any local authority company is in a particular business when it is not true. In such cases the proposed name is not accepted but some alternate name may be approved. Therefore, three names, in order of their priority are given in the application to the Registrar of Companies. (Performa Application for availability of names (Form 1A) is given at the end of the chapter.) (iv) Fixing up Signatories to the Memorandum of Association: Promoters have to decide about the members who will be signing the Memorandum of Association of the proposed company.
Usually the people signing memorandum are also the first Directors of the Company. Their written consent to act as Directors and to take up the qualification shares in the company is necessary. (v) Appointment of professionals: Certain professionals such as mercantile bankers, auditors etc., are appointed by the promoters to assist them in the preparation of necessary documents which are required to be with the Registrar of Companies. The names and addresses of shareholders and the number of shares allotted to each is submitted to the Registrar in a statement called return of allotment.
(vi) Preparation of necessary documents: The