Part 1: Companies House Reform Business names Section 26: Use of a name that another company has been required to change
This section inserts section 1198B into the Companies Act 2006, which provides that where a company has been directed to change its name or ordered to do so by the names change adjudicator (and the period for compliance has expired) no other company should carry on business in the UK under that name if an acting or former officer or shareholder of the initial company has similar involvement in the new company. Exceptions are where the second company is registered under the Companies Act 2006 by the name or where the direction or order predate the coming into force of this section. Contravention of this section is an offence on the part of the company and all officers in default and attracts, on summary conviction, a fine of up to level 3 on the standard scale as well as a daily default of up to one-tenth of that for so long as the contravention continues.