{"id":4496,"date":"2018-10-02T15:50:10","date_gmt":"2018-10-02T15:50:10","guid":{"rendered":"https:\/\/www.aziza.com.ng\/read\/?p=4496"},"modified":"2024-11-10T10:07:30","modified_gmt":"2024-11-10T10:07:30","slug":"cac-name-reservation-for-incorproated-trustees","status":"publish","type":"post","link":"https:\/\/www.aziza.com.ng\/read\/cac-name-reservation-for-incorproated-trustees\/","title":{"rendered":"CAC NAME RESERVATION FOR INCORPROATED TRUSTEES"},"content":{"rendered":"

CAC GUIDELINES FOR NAME RESERVATION FOR INCORPROATED TRUSTEES<\/a><\/h4>\n

When registration a business or company in Nigeria<\/a>, one of the first step is to search the availability of the intended name or company. This process is call “NAME RESERVATION”<\/p>\n

In this blog, we explained the Corporate Affairs Commission (CAC) Name Reservation Guidelines for INCORPROATED TRUSTEES\u00a0Registration in Nigeria<\/a>.<\/p>\n

The Companies and Allied Matters Act, 1990 (hereinafter referred to as CAMA does\u00a0not make sufficient provisions for name reservation under Part \u201cC\u201d of CAMA as it\u00a0does for Part \u201cA\u201d and Part \u201cB\u201d. Section 593(a) however, provides that the\u00a0constitution of an association shall state the name or title of the association\u00a0which shall not conflict with that of a company, or with a business name or
\ntrade mark registered in Nigeria. It is worthy of note that this is the only provision\u00a0expressly and directly regulating the reservation of name under Part \u201cC\u201d CAMA.
\nThus relevant provisions outside part \u201cC\u201d must be employed to govern issues not\u00a0expressly provided.<\/p>\n

SECTION 673 (1) Provides that: – Where one or more trustees are appointed\u00a0by any community of persons bound together by customs, religion, kingship, or\u00a0nationality or by anybody or association or persons established for any religions,\u00a0educational, literary, scientific, social development, cultural, sporting or charitable\u00a0purpose, he or they may, if authorized by the community, body or association\u00a0(hereinafter referred to as \u201cthe association\u201d) apply to the commission.<\/p>\n

 <\/p>\n

Read: How to register\u00a0INCORPROATED TRUSTEES (Foundation)<\/a><\/h3>\n

 <\/p>\n

A number of points worthy of note have been raised in the above provision:
\nI. Registered trustee must either be a community of persons, a body of persons\u00a0or an Association of persons.
\nII. Also based on the above provision, name reservations under Part \u201cC\u201d of\u00a0CAMA are categorized into the following:
\n(a) Religious Association<\/strong>
\n(b) Educational Association<\/strong>
\n(c) Literary Association<\/strong>
\n(d) Scientific Association<\/strong>
\n(e) Social Development Association<\/strong>
\n(f) Cultural Association<\/strong>
\n(g) Sporting Association<\/strong>
\n(h) Charitable Association<\/strong><\/p>\n

Examples of applications that may be allowed are names presented with the\u00a0following words: Community, Body, Foundation\/Fun, Initiatives, Society, Club, Centre,\u00a0Mosque, Church, Ministry, Outreach, Chapel, Mission\/Embassy Assembly etc.
\nIt should be noted that names that fall within the categories mentioned above are\u00a0in exhaustive<\/p>\n

PROHIBITED AND RESTRICTED NAME RESERVATION:<\/strong>
\nSection 593 prohibits the registration\u00a0of an association under a title or name which is in conflict with that of a company,
\nor with a business name or trade mark registered in Nigeria.
\nRelying on the provision of section 673 quoted above is clearly insufficient and may\u00a0lead to the registration of names that are misleading, undesirable, offensive or\u00a0contrary to public policy which is certainly not the intention of the legislature. It is\u00a0therefore imperative to apply the provision of other sections of the laws to\u00a0compliment the above provision. Thus section 30(1) and (2) which provides for\u00a0prohibited and restricted names under Part \u201cA\u201d are relevant. It is noteworthy that\u00a0the combined effect of Sections 30(1)(a), 579 and Section 593 (a) is that registered\u00a0company names, business names, incorporated trustees and trade mark should not
\nconflict with or violate each other are by extension applicable to reservation of\u00a0names under Incorporated Trustees.<\/p>\n

 <\/p>\n

Read: School Management Software for Primary & Secondary<\/a><\/h3>\n

 <\/p>\n

PROHIBITED NAME RESERVATION: –<\/strong>
\nThese are names that are not allowed and are out rightly\u00a0rejected on application. They include the following.
\n(A) Names which are identical with already registered names. These categories\u00a0of names are not registrable. This is to avoid duplication, confusion and\u00a0guard against passing off.
\n(B) Names which are so similar with an already registered company, Business\u00a0names or incorporated trustee as to be calculated to deceive. The emphasis\u00a0here is that, similarity of names alone does not suffice; the similarity must be\u00a0such as to cause deceit or confusion. Examples of similar names are:
\n(1) Friends of the Needy LTD (Registered)
\n(2) Friends of Needs Forum (Application)
\n(I) Will of God Church (Registered)
\n(II) Will of God Bible Church (application)
\n(C) Names that are, in the opinion of the commission, capable of misleading as\u00a0to the nature or extent of its activities or are undesirable, offensive or\u00a0otherwise contrary to public policy. i.e. names that are vague or misleading\u00a0e.g. Rescue Operations.<\/p>\n

The above name is capable of misleading as it has not clearly reflected whether it is\u00a0a body or an association or a community of persons.
\nSimilarly, other names may be undesirable, offensive or otherwise or contrary to\u00a0public policy. Examples of such names include the following:
\n(1) Promiscuous Society of Abuja
\n(II) Cybercrime Promoters and Hackers Association
\n(III) Foundation of Gay Marriages<\/p>\n

It is very important to note that, in order for a name not to be vague or misleading;\u00a0it must be self-explanatory, it must established that, it is either an association, or a\u00a0body or community of persons and must convey a comprehensive meaning in itself.
\nFor example: – Good Samaritan Accident Victims Foundation.<\/strong><\/p>\n

 <\/p>\n

Read: Debt Recovery \/ Collection Service in Nigeria<\/a><\/h2>\n

 <\/p>\n

It will be out of place if the aims and objects of the association are aligned and in\u00a0harmony with the proposed name. Therefore, approving a name under it depends\u00a0largely on the aims attached to same which serves as a guide for the approving\u00a0officers. Thus, every application; whether new, revalidation or re-entry must be\u00a0accompanied by aims and objectives. For example, the aim of Good Samaritan\u00a0Accident Victims Foundation<\/strong> is to provide assistance and first aid to accident\u00a0victims. Conversely, where a name of an association is Divine Guidance Health\u00a0Foundation<\/strong> and its principal aim it to promote sporting activities or cultural\u00a0development among youths, such a name would not be allowed as the name is at\u00a0variance with its aims\/objectives.<\/p>\n

RESTRICTED NAME RESERVATION:<\/strong> –
\nThese are names or words that are not out rightly\u00a0rejected but are allowed with Commission\u2019s consent. They Include: – Federal,
\nNational, Regional, State, Government Municipal, Chartered, Cooperative,\u00a0Group or Holding.
\nIt is very important for approving officers to always remember that, rejection of\u00a0names within the confines of the law falls under two categories to wit: Prohibited\u00a0or restricted. Thus, for any name or word to be rejected, there must be\u00a0legislation or regulation made pursuant to powers conferred by law.<\/p>\n

Flowing from the above, Prohibited names are:-
\n(a) Identical names
\n(b) Names that are so similar as to be calculated to deceive
\n(c) Misleading names
\n(d) Undesirable names
\n(e) Offensive names
\n(f) Names contrary to public policy<\/p>\n

The current practice and guideline for name reservation under Part \u2018C\u2019 prohibit\u00a0certain names\/words but, in some cases, without justification. These words are\u00a0partnership, Programme, Project, Services, conference and Committee.
\nOther words in this category include; Council and Guide. While words such as\u00a0conference and committee may be refused because it suggest a very temporal\u00a0gathering, a careful look at the meaning of the other words shows that, the use of\u00a0such words depends on the circumstances of each case. For Example, names such\u00a0as: partners in the eradication of HIV\/AIDS, Association for the promotion of\u00a0Islamic education integration programme, Association for Hausa cultural\u00a0resuscitation project, Bwari Council of Elders, etc may be allowed.<\/p>\n

 <\/p>\n

Need a Lawyer, Law Firm or Legal Service in Nigeria?<\/a><\/h2>\n

 <\/p>\n

DISCRETIONARY WORDS<\/strong>
\nSome words under the current practice are regarded as discretionary and approval\u00a0is based on the discretion of the approving officers. These words include crusade,\u00a0Vanguard, Organization, league, Action, Union, Forum, Campaign,\u00a0Alliance and Network etc. While discretion will continue to play an important\u00a0role in availability approval, it must be exercised objectively; so that, whether or
\nnot an application may be approved depends on how the word is employed.
\nE.g.\u00a0Forum for the promotion of poultry farming, People Living with HIV\/AIDS\u00a0Network, Centre for education & Campaign against Corruption etc.
\nWhere the use of any of the words mentioned above is in such manner as to\u00a0suggest involvement of government at any level (federal, state or municipal), then\u00a0the Commission\u2019s consent must be sought and obtained.<\/p>\n

UNION<\/strong>
\nThe word \u2018union\u2019 is allowed subject to the context in which it is employed. Where\u00a0the usage suggest a tribal, town or other registrable bodies under part \u2018C\u2019 then it\u00a0should be allowed. Example:- Orlu Town Progressive Union, Union of Hausa\u00a0People Abuja, Union for the advancement of Science education, etc. where\u00a0the usage of the world suggestive of a trade union, (association of employees or
\nassociation of employers) then the name should not be allowed Example:- Textile\u00a0and Garments Employees Union, Union of Road Transport Employers etc.
\nThe names should not be allowed as they are governed by the Trade Union Act.\u00a0(See Section 541(2)<\/p>\n

NAMES SUGGETING PROFIT MAKING VENTURE:<\/strong> –
\nNames under Part \u201cC\u201d of\u00a0CAMA are for charitable\/development purposes and not business concerns. Thus\u00a0any application suggesting a profit sharing venture should be rejected.<\/p>\n

THE USE OF REGIONAL NAME RESERVATION:<\/strong>
\nWith reference to the provisions of Section 30\u00a0(2) of the Act which requires consent for the use of any word suggesting
\ngovernment patronage, regional names such as Northern Nigeria, Southern Nigeria,\u00a0Niger Delta, etc. except where they are used as suffix, require consent of the\u00a0Commission. E.g. Niger Delta Youths Association, Northern Nigeria cultural\u00a0foundation, etc, require consent.<\/p>\n

USE OF \u201cSTATE\u201d AND ”LOCAL GOVERNMENT\u201d IN A NAME RESERVATION:-<\/strong>
\nWhere: State\u201d or \u201clocal government\u201d or \u201cArea council\u201d or \u201cmunicipal\u201d is\u00a0added to a proposed name, such application should be subjected to the consent of\u00a0the Commission or State\/local government concerned. This rule applies only\u00a0where the name and the word \u201cstate\u201d are coming at the beginning of the name.
\nE.g. Lagos State Youths Association<\/strong>. Where however the name starts with\u00a0name of a state or local government, without the addition of the word \u201cstate\u201d or\u00a0local government\u201d, etc such names should be allowed without any consent.
\nSimilarly, where name of a state followed by the word \u201cstate\u201d, is employed as a\u00a0suffix, the application requires no consent. Examples include: Bauchi Educational\u00a0Development Association<\/strong>, Fish Sellers Association Lagos State<\/strong>, meat\u00a0Sellers Association Imo State<\/strong>.<\/p>\n

 <\/p>\n

Read: Business \/ Company Registration in Nigeria Requirements<\/a><\/h3>\n

 <\/p>\n

THE TWO WORD RULE:<\/strong>
\nThe two words rule applicable to name reservation\u00a0under part \u2018A\u2019 unless otherwise provided, shall apply mutatis mutandis to availability\u00a0applications under part \u2018C\u2019 Examples: Divine Guidance evangelical mission\u00a0existing, and application for Divine Guidance International Ministry should be\u00a0allowed as the last two words have clearly differentiated them.<\/p>\n

SYNONYMOUS:<\/strong>
\nIn the current practice, where an application contains two or\u00a0more synonymous words such as Church Chapel Mission, Embassy, Ministry,\u00a0Outreach, Assembly<\/strong> such names are usually denied and the applicant is asked to\u00a0make a choice between them. E.g Dominion Christian Chapel Assembly,\u00a0Church of God Mission, Chapel of God Ministry, word of life Chapel\u00a0Church<\/strong>, etc.
\nUnless where the name is vague or misleading, this practice is unjustifiable<\/p>\n

SPECIFIC NAMES AND EXCEPTION TO THE TWO WORDS RULES:<\/strong>
\nWhere\u00a0an application suggests in a clear term the intention of the association, the two\u00a0word rule would not come to play. E.g. Samuel Abayomi Educational\u00a0Foundation, Samuel Abayomi Health Foundation. From the forgoing Health\u00a0and Educational are specific, and thus, distinct from each other.<\/p>\n

USE OF PERSONAL NAMES IN THE REGISTRATION OF FOUNDATION:<\/strong>–
\nHitherto, single word or name preceding the word \u201cFoundation\u201d is disallowed on\u00a0the ground that the applicant should give full or add one more name or word to aid\u00a0clarity. A single name preceding foundation should be allowed unless there is an\u00a0identical or similar name existing. In the absence of that, it is the subsequent\u00a0applicant that should be asked to vary his own. E.g. El-Rufai Foundation. This\u00a0name should be allowed in the absence of any similar name and any subsequent\u00a0applicant be asked to add one or more names to vary his own. E.g. El-Rufai\u00a0Mohammed Foundation.<\/p>\n

LOCALIZATION RULE:<\/strong>
\nCertain names are capable of co-existing when\u00a0domesticated in various towns and localities of the federation. For example: –
\nMuslim Schools Proprietors Association and Muslim Schools Proprietors\u00a0Association of Abuja.
\nNote that locality alone suffices to make a difference in two similar names. For\u00a0example: Jolly Friends Club Lagos and Jolly Friends Sokoto.<\/strong><\/p>\n

 <\/p>\n

Buy: School ERP or Software with Mobile App in Nigeria<\/a><\/h2>\n

 <\/p>\n

THE USE OF \u201cRESEARCH\u201d IN ASSOCIATION:<\/strong>
\nJust like it is registrable as a\u00a0company limited by Guarantee, the word \u201cresearch\u201d with the aim of conducting\u00a0research in advancement of those provisions mentioned in Section 590 (1); i.e. to\u00a0carry out religious, educational, literary, scientific, cultural, sporting research, with\u00a0a view to providing charitable services to the community, such names should be\u00a0allowed.<\/p>\n

MINISTRIES OR CHURCHES IN PLURAL<\/strong>: – under the current practice, only a\u00a0singular form of the above words are allowed. Thus, an application for names such\u00a0as: International Renaissance Ministries, Global Salvation Missions, etc.\u00a0where not allowed. This practice has no legal basis and should be discountenanced.<\/p>\n

NAMES RESERVATION IN LANGUAGES OTHER THAN ENGLISH:\u00a0<\/strong>
\nUnder the current practice,\u00a0names in languages other than English are usually queried as \u2018vague\u2019 or are
\nsometimes couched in Arabic language and seeking registration for the\u00a0advancement of Islamic Education\/Religion. Such names should be allowed\u00a0provided the stated objects are lawful. E.g. Madarast-ul Isamiyya Wa\u00a0Arabiyya, Masjid-ul Islamiyya, Jama\u2019atu Izalatu Bid\u2019a Wa Ikamatu\u00a0Sunnah, Ansarudden Society, etc.<\/strong><\/p>\n

USE OF \u201cOF NIGERIA<\/strong>\u201d The use of \u201cof Nigeria\u201d or \u201cNigeria\u201d in a name reservation\u00a0<\/strong>should be\u00a0allowed without the requirement for consent; but the approving officer should\u00a0consider the aims and objectives and ensure that the Association does not proclaim\u00a0itself as an umbrella body of all such similar associations.<\/p>\n

NAME OF A COUNTRY IN NAME RESERVATION<\/strong>: – The authorization of the Embassy of the country
\nconcerned should be sought and obtained.
\nWHERE A COMPANY INTENDS TO FORM A FOUNDATION: – If any company\u00a0intends to register a foundation under Part \u2018C\u2019 using its corporate name e.g. \u201cMTN\u00a0Foundation,\u201d \u201cDangote Foundation\u201d, etc, a copy of the company\u2019s certificate of\u00a0incorporation and a resolution of the company authorizing the application must be\u00a0attached to the availability application.<\/p>\n

NETWORK: This can be allowed where it is used as a suffix.\u00a0FORUM: The word \u201cForum\u201d can be allowed in a name provided it does not have\u00a0political undertone.<\/p>\n

MOVERMENT, DEMOCRACY, GOOD GOVERNMENT<\/strong> IN NAME RESERVATION<\/strong>: – The word \u201cMovement\u201d\u00a0suggests militancy while \u201cDemocracy\u201d and \u201cGood Governance\u201d suggest politics and\u00a0not within the purview of Section 590 of the Act. Such names require consent of\u00a0the Registrar General.<\/p>\n

AGENCY, CONGRESS<\/strong> IN NAME RESERVATION<\/strong>: – The two words are not registrable under Part \u2018C\u2019 as they\u00a0do not suggest perpetual succession.<\/p>\n","protected":false},"excerpt":{"rendered":"

CAC GUIDELINES FOR NAME RESERVATION FOR INCORPROATED TRUSTEES When registration a business or company in Nigeria, one of the first step is to search the availability of the intended name or company. This process is call “NAME RESERVATION” In this blog, we explained the Corporate Affairs Commission (CAC) Name Reservation Guidelines for INCORPROATED TRUSTEES\u00a0Registration in […]<\/p>\n","protected":false},"author":1,"featured_media":4437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[304],"class_list":["post-4496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cac-name-reservation-guideline"],"acf":[],"yoast_head":"\nCAC Name Reservation Guideline - Aziza Goodnews<\/title>\n<meta name=\"description\" content=\"In this blog, we explained the Corporate Affairs Commission (CAC) Name Reservation Guidelines for INCORPROATED TRUSTEES\u00a0Registration in Nigeria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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