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.