SA Joint Venture - Using Business Trading Name?

[Gerrycav]

Hi, 2 years ago I did a joint venture with a national company, basically adding a new division within the existing group. With this group, we set up an independent Pty Ltd company, myself with a 50% share with 2 others the balance.

The question is whilst the company is still registered, can I continue to trade with this name independent of the other company directors? I understand the other directors have registered the business name.

Regards.

 

[Tracy B]

Hi Gerrycav,

The trading name belongs to the company. You cannot trade with the same name for a separate business or company. As a director of the company, you owe a duty to the company to act in its best interests. This includes not competing against the company. If you were to trade in a similar name in a separate business, this could be in breach of this duty.

What is happening with the company? It is best to continue the company or wind it up or buy the other shareholders out.

If you're asking whether you can still trade in the company, then given you have 50% shareholding, it appears you can. However, you will need to look at the company articles. If you do though, be aware that profits are shared by all shareholders and the other two directors may wish to participate.

 

[Gerrycav]

Hi Tracy B
Thank you for the fast response, It makes sense of I thought was the case.
Cheers

 

[Tracy B]

Welcome Gerrycav, glad to have helped.