Name-change does not absolve a co. from its obligations

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Many individuals and companies face challenges when collecting judgments from the losing party. Many defendants attempt to avoid their legal obligations by changing their name but this does not affect a company’s obligations and the legal actions taken against such company.

Furthermore, it is illegal and unethical to change a business name in an attempt to evade having to pay a legal obligation. Any company that makes a name-change, should do so according to the necessary procedures to amend the contract of the company and declaration procedures.

Thus, the name-change should be recorded with the Ministry of Commerce. The plaintiff should obtain proof of the name-change to show the company (operating under the new name) is the original defendant just operating under a different name. Even if the company claims it has dissolved, filed for bankruptcy, or become insolvent, the company should have attempted to resolve its debts, which is a required stage in all three of the previously mentioned business actions.

By Najmah Brown Esq

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