company name application without my consent

tisa (Querist) 28 December 2010 This query is : Resolved
I have a doubt in connection with the formation of a company.

I with other two people started discussion about starting a company. We had discussions of starting a educational business and shortlisted some name and given it for approval of MCA and these names have not been approved. By this time I decided to backout due to some personnel reasons.

After that other two continued this discussions for starting a construction company and they have applied for a name for this business. But they forgot to remove my name from the application which was forwareded by a chartered accountant. Now the name of this company is sanctioned and when it came to incorporate it is noted that my name was there in the application.

Now this CA have advised to get a NOC letter from me stating that " I was a co-applicant for this name but due to some personnel problems I canot join this company and continue in this company. I have no objection in other two promoters continuing with this name and company"

But for me I was not a part of the discussions when this new business(constuction company) was discussed and name was proposed. So is it ok to say that "I was a coapplicant for this name" which is not true. Will there be any other legal issues in future as I am presently employed in a private firm?

kindly advise me..

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A V Vishal (Expert) 28 December 2010
Tisa,

If you are interested in settling the issue amicably then issuing a NOC is not a problem (What ever the reasons may be). As for the current employment being a co-applicant is not a issue which needs to be worried about.

M V Gupta (Expert) 29 December 2010
Inclusion of ur name in the application for reserving the name for the Company without ur signature, of course was not in order. As u are not interested in joining the Company better put an end to the appearence of ur name in the Company. Give the NOC as suggested by the CA. You have no stakes to lose.

H.M.Patnaik (Expert) 29 December 2010
It is clear from your query that the Application for availability of name for the proposed Company was made by others without your knowledge. Mere availability of Name doesn't bind you in any manner to partake in business as a Shareholder.So, you can issue a Letter of No Objection addressed to the Regisrar of Companies of the State stating that even though my name was included in the application for availablity of name of the proposed Company, I have no objection to the other applicants persuing business in the name allotted to the Company.