Name Change does not absolve a co. from its obligations

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.

Originally published in the Arabtimes on January 4, 2018. 

Name-change does not absolve a co. from its obligations https://t.co/4WucNbQxU8 #kuwait #usa #business #commercial #law #arabtimes #lawyer #lawfirm #legal #law

— Al Adwani Law Firm (@AlAdwaniLawFirm) January 7, 2018