39 Prohibition on use of names

Prohibition on use of names

Provisions of the Act
There are names that are usually not approved for use by private or public companies. Company names having the words or company names that are misleading that could give the public at large an impression that the company is a branch of a foreign company when it is not, etc, are not permitted for registration for private or public company unless a special approval is obtained from the Registrar or the Minister. The Act provides that MITI and ROC must approve first the name or the new name of the company prior to its registration. Notwithstanding the Section 22(1), the ROC is also restricted to approve on application for names in the opinion of the ROC, is undesirable and prohibited in use of names under the Minister’s direction. A comprehensive guideline has been given by the CCM to ease the application of company name and is reproduced on the following page for your understanding:

 

Prohibition by virtue of the direction of the Minister

Direction of the Minister as per Government Gazette No. 716 (amended 2001) prohibits names suggesting connection with the following:

a. members of the Royal family or Royal patronage such as:

“Royal”, “King”, “Queen”, “Prince”, “Princess”, “Crown”, “Regent” or “Imperial”

 

b. state government, federal government, statutory body, government agency or municipal authority such as:

“Federal”, “State” or “National”

 

c. any political party, society, trade union, co-operative or building society

 

d. words that import meaning alike such as:

“Bank”, “Banker”, “Banking”, “Bumiputra”, “Bureau”, “Chamber of Commerce and Industry”, “Chamber of Manufacturers”, “Chartered”, “Executor”, “College”, “University”, “Institute”, “Council”, “Foundation”, “Guarantee”, “Prime”, “Made in Malaysia”, “Registry”, “Treasury”, “Credit”, “Consumer”, “Exchange”, “ Fair Price”, “Finance”, “Fund”, “Insurance”, “Leasing”, “Trust”, “Unit Trust”, “Investment”.

 

e. identity, nature, objects or purposed of a company or in any other manner

 

f. members of the public but is offensive

 

g. name of a company or foreign company registered under the Act when being translated

 

h. name of another company or foreign company of similar resemblance or could be mistaken for

 

i. name of another company or foreign company of similar resemblance or could be mistaken for which has been reserved for the purpose of incorporation or intended name change under the Act

However, the Minister may consider application should applicant could justify the use of names or words contained in the prohibition of this Direction, the applicant may apply to the Minister through the ROC by stating reasons and justifications
for use of such names or words with payment of RM150.00.

 

Prohibition in connections with control by other laws

a. Banking and Financial Institutions Act 1989 –

“Bank”, “deposit-taking”, “Finance”, “Merchant Bank”, “discount house”, “money broker”, “foreign exchange broker”, “Financial”, “Factoring”, “Leasing”, “development finance”, “building credit” or such other words which carry similar connotation

 

b. Securities Industry Act 1983 –

“stock exchange”, “stock market”, “securities trading market” or such other words which carry similar connotation

 

c. Futures Trading Industry Act 1993 –

“stock exchange”, “stock market”, “securities trading market” or such other words which carry similar connotation

 

d. Insurance Act 1963 –

“insurance”, “assurance”, “underwriter” or such other words which carry similar connotation

 

e. Money-Changing Act 1998 –

“money changer”, “foreign exchange” or such other words which carry similar connotation

 

f. Valuer, Appraisers and Estate Agents Act 1981 –

“estate agent”, “house agent”, “property agent”, “land agent”, “house broker” or such other words which carry similar connotation

 

g. Takaful Act 1984 –

“Takaful” or such other words which carry similar connotation

 

h. Accountant Act 1967 –

“taxation”, “tax”, “accounting”, “Public Accountant”, “Auditor”, “Tax consultant”, “Tax advisor” or such other words which carry similar connotation

 

i. Medicine (Advertisement and Sale) Act 1956 –

“Private clinnc”, “Clinic”, “Private Radiological clinic”, “private medical laboratory”, “alternative medicines”, “traditional herbs”, “tabib”, “ treatment”, “hair clinic”, “ hair loss”, “homeopathy”, “traditional medicine herbs”, “medical hall” or such other words which carry similar connotation

Similarly, should the applicant could obtain a copy of the written consent from the agency which regulates the relevant legislation as aforesaid, the ROC is prepared to consider the application of the name search.

 

Prohibition in connections with activities regulated by government agencies or professional bodies

a. Labuan Offshore Financial Services Authority (LOFSA)

“Labuan Offshore”, “ Offshore Company”, “ Labuan Trust Company” or such other words which carry similar connotation

 

b. Malaysian Architect Board

Word such as “ architect”.

 

c. Ministry of Education Malaysia

“college”, “ institute”, “university”, “school” or such other words which carry similar connotation

 

d. Department of Co-operative Development

“co-op”, “ Co-operative” or such other words which carry similar connotation

 

e. Department of Civil Aviation

“aviation”, “ airways”, “ airlines”, “air” or such other words which carry similar connotation

 

f. Malaysia Engineer Board

Word such as “engineer”.

 

g. Malaysia Institute of Accountants

“accountant”, “taxation”.

 

h. Prime Minister’s Department

“dinar”.

 

i. Ministry of Primary Industries

“Information Centre for Forest Management”.

 

j. Corporate Application Section in CCM

“Amanah”, “Trust” or such other words which carry similar connotation

 

Again, should the applicant could obtain a copy of the written consent from the relevant government agency or professional bodies which regulate the relevant legislation as aforesaid, the ROC is prepared to consider the application of the name search.

 

Prohibition in connections to national and public interest

a. Government-linked companies and famous established names that are registered under Trade Mark Registration Act

“Astro”, “DIGI”, “Berjaya”, “Chase”, “HICOM”, “Petronas”, “Intrakota”, “Celcom”, “Pernas”, “Perodua”, “Modenas”, “Telekom”, “Kenyir”, “ Kulim Hi-Tech” and etc.

 

b. “Cyber”, “MSC”, “Putrajaya”, “Malay Reserve”, “Middle Man”, “Liquor”, “Sweepstake”, “Lottery”, “Fortune Teller” and etc.

 

c. Government slogan such as “Vision 2020”, “Malaysia Boleh”, “Bersih, Cekap dan Amanah” and etc.

 

In addition, CCM’s guideline also states that company name must follow the following principles and characteristics:

a. Names shall use the correct language and spelling

b. Name involves the use of language other than Malay or English, the meaning of such words should be given

c. Name must not be offensive

d. Name must not resemble elements of religion

e. Name must not be too general

f. Name involves use of name of directors and immediate family members of director or promoter, proof of family relationship must be given

g. Name involve use of individual name of a group of companies in existence, consent of letter must be obtained from the group of companies which have such individual names

h. Name which is created, to state the meaning of the created words

i. Name must not be a misleading acronym such as IBM, ICI, PNB and etc

 

Steps and fees required for applying the reservation of company name

1. Application to the Companies Commission of Malaysia (CCM) on the prescribed Form 13A to ensure the availability of the proposed company’s name. A fee of RM30 per name is imposed.

2. Stamp the company documents. A fee of RM220.

3. File necessary documents with the CCM within three months after name reservation. A fee of RM2,550 may be imposed by secretarial company.

4. Make a company seal. A cost of RM150 will be imposed by secretarial company.

5. Purchase of statutory books and share certificate books. A cost of RM200 will be required.

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Prohibition on use of names Copyright © 2011 by Wawasan Open University. All Rights Reserved.

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