Companies Act 2014 section 875

Civil enforcement of prohibition on trading under misleading name

Section 875 provides a civil enforcement mechanism allowing the Registrar or the Corporate Enforcement Authority to apply to the court to stop a person trading under a misleading name, and sets out the conditions that must be met before such an application can be made.

• The Registrar or the Corporate Enforcement Authority can apply to court for an order requiring a person to stop trading under a misleading name in breach of section 27(1).
• Before such a court application can be made, the person must have been convicted of an offence under section 27(2) and must have been served with a formal notice to cease the offending activity.
• The person must have failed to comply with that notice within 14 days of receiving it, or within any longer period specified in the notice.
• When granting such an order, the court may also direct the person in breach to pay all costs associated with the application.

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