Registration of Business Name - what it means?

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Lyndan

Registered User
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Hi All,

A friend has asked me too look into something for her. Her husband got involved in a company with friends and now its all gone pear shaped - it seems like there is money owing and we are trying to establish what kind of liability he has, if any.

When I look at the company on the CRO website it says that the only item filed for them is a 'Registration of Business Name' form which has not been signed by my friend but by another one of the partners. There is no mention of directors or anything else just this business name form,

What kinda company just lodges this kinda form? And does this mean that the person who signed that particular form is the one responsible?

Cheers
 
Looks like they are just a sole trader with unlimited liability. You can request a copy of the cert to see whose name is on it.
 
a business trade name is merely a person or persons carrying on a business in a name other than their owm. to all intents and pruposes it is the same as if they were trading under their own name and would be personally liable for debts unlike a company which is a seperate legal entity. there is a legal requirement to registera trade name but rarely is one beffore thecourts for not doing so.
 
I requested it and its one of the other lads listed - not my friend.

Does this mean that the guy listed is responsible for any money owed? It doesnt seem like there is an actual company formed..
 
Lyndan said:
I requested it and its one of the other lads listed - not my friend.

Does this mean that the guy listed is responsible for any money owed? It doesnt seem like there is an actual company formed..
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A registration of business name by a partnership ( you said signed by one of the partners ) is just that - a partnership of individuals who have set up in business together and are trading under a business name. If, as you suspect, this is not a company, then as a partnership liability for debts will be ( or ought to be ) laid out in the partnership agreement. Such an agreement between the parties should have been made at the start and if you can get a copy of it that will clarify the position.

TO give an example, ( which may not be your position ) 3 partners setting up together in an unlimited partnerhsip with three equal shares would share profits equally between them. However that does not necessarily mean that they are only responsible for one third of the debt. If would depend on what bank or supplier guarantees ( if any ) were given. It can happen on signing for cetain debt that each of the partners has responsibility for all of the debt. I'd urge him to check the partnership agreement and if same cannot be found, or does not exist, then a legal consult would be advisable.
 
Thanks Graham

He doesnt think there is any partnership agreement - if there was should this not be lodged with the CRO?

The Business name form is only signed by one of the guys and registered as his home address no mention of anyone else.
 
I wouldn't attach too much importance to the registration of the business name. Obviously, if he signed the registration papers, it would be difficult to dispute that he was in the partnership. But the corollary does not hold - i.e. the fact that he didn't sign does not prove that he was not a partner.

Either this guy was in a partnership or he wasn't - that is a matter of fact, and without all the facts he can get no useful opinion on this. Get him to talk to a solicitor.
 
Lyndan said:
He doesnt think there is any partnership agreement - if there was should this not be lodged with the CRO?
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No it wouldn't have been. If it's not a company then forget the CRO, if its an unwritten partnership then as MOB said, talk to a solicitor.
 
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