We’ve recently encountered a number of cases where proceedings have been issued incorrectly, generally seen in the individuals name rather than the Limited companies name.
More worryingly, a Judge recently allowed a Claimant to pursue proceedings against a Director personally rather than the limited company. The reasoning the Judge gave for allowing this was that the company did not communicate clearly to the customer/claimant that the they were contracting with a limited company. This was due to a lack of clear details being placed on the sales invoice and other sales material.
The government guidance suggests that the company name should be displayed at any address where the business operates and at the registered company address. The name must be easy to read and available at any time.
Further, all company documents and letter must include the company name. So any business letters, order forms and website pages should display the following:
- The company’s registered number
- The registered office address
- Where the company is registered (England and Wales)
- If it’s a limited company then this needs to be displayed
If the business is registered as a sole trader then you can trade under your own name or you can choose a different business name. But If you choose a business name, you must include your own name and the business address on all letterheads and order forms.
If the business is a partnership, then your letterheads, order forms, receipts and invoices must include the names of all partners and the address of the main office. it is acceptable to state where a list of partners may be found if there are many partners.
Under the Companies Act 2006 there are civil and criminal consequences if the above is not complied with which includes being fined