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H.B. 26 Enrolled

    

TRADE OR BUSINESS NAMES

    
1998 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Ron Bigelow

    AN ACT RELATING TO CORPORATIONS AND OTHER BUSINESS ENTITIES;
    AMENDING PROVISIONS RELATED TO DISTINGUISHING NAMES; AND MAKING
    TECHNICAL CORRECTIONS.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         16-10a-401, as enacted by Chapter 277, Laws of Utah 1992
         48-2a-102, as last amended by Chapter 61, Laws of Utah 1994
         48-2b-106, as last amended by Chapter 61, Laws of Utah 1994
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 16-10a-401 is amended to read:
         16-10a-401. Corporate name.
        (1) The name of a corporation:
        (a) must contain:
        (i) the word:
        (A) "corporation[,]";
        (B) "incorporated[,]"; or
        (C) "company[,]" [or];
        (ii) the abbreviation:
        (A) "corp.[,]";
        (B) "inc.[,]"; or
        (C) "co.[,]"; or
        (iii) words or abbreviations of like import in another language;
        (b) may not contain language stating or implying that the corporation is organized for a
    purpose other than that permitted by Section 16-10a-301 and its articles of incorporation; and
        (c) [may not,] without the written consent of the United States Olympic Committee, may


    not contain the words:
        (i) "Olympic[,]";
        (ii) "Olympiad[,]"; or
        (iii) "Citius Altius Fortius."
        (2) Except as authorized by Subsections (3) and (4), the name of a corporation must be
    distinguishable, as defined in Subsection (5), upon the records of the division from:
        (a) the name of any domestic corporation incorporated in or foreign corporation authorized
    to transact business in this state;
        (b) the name of any domestic or foreign nonprofit corporation incorporated or authorized
    to transact business in this state;
        (c) the name of any domestic or foreign limited liability company formed or authorized to
    transact business in this state;
        (d) the name of any limited partnership formed or authorized to transact business in this
    state;
        (e) any name reserved or registered with the division for a corporation, limited liability
    company, or general or limited partnership, under the laws of this state; and
        (f) any business name, fictitious name, assumed name, trademark, or service mark registered
    by the division.
        (3) (a) A corporation may apply to the division for authorization to file its articles of
    incorporation under, or to register or reserve, a name that is not distinguishable upon its records from
    one or more of the names described in Subsection (2).
        (b) The division shall approve the application filed under Subsection (3)(a) if:
        [(a)] (i) the other person whose name is not distinguishable from the name under which the
    applicant desires to file, or which the applicant desires to register or reserve[,]:
        (A) consents to the filing, registration, or reservation in writing; and
        (B) submits an undertaking in a form satisfactory to the division to change its name to a
    name that is distinguishable from the name of the applicant; or
        [(b)] (ii) the applicant delivers to the division a certified copy of the final judgment of a court

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    of competent jurisdiction establishing the applicant's right to make the requested filing in this state
    under the name applied for.
        (4) A corporation may make a filing under the name, including the fictitious name, of
    another domestic or foreign corporation that is used or registered in this state if:
        (a) the other corporation is incorporated or authorized to transact business in this state; and
        (b) the filing corporation:
        [(a)] (i) has merged with the other corporation; or
        [(b)] (ii) has been formed by reorganization of the other corporation.
        (5) (a) A name is distinguishable from other names, trademarks, and service marks on the
    records of the division if it:
        (i) contains one or more different letters or numerals[,]; or [if it]
        (ii) has a different sequence of letters or numerals from the other names on the division's
    records. [Differences between singular and plural forms of words are distinguishing.]
        (b) Differences which are not distinguishing are:
        (i) the words or abbreviations of the words:
        (A) "corporation[,]";
        (B) "company[,]";
        (C) "incorporated[,]";
        (D) "limited partnership[,]";
        (E) "L.P.[,]";
        (F) "limited[,]";
        (G) "ltd.[,]";
        (H) "limited liability company[,]";
        (I) "limited company[,]";
        (J) "L.C.[,]"; or
        (K) "L.L.C.";
        (ii) the presence or absence of the words or symbols of the words "the," "and," or "a[;]";
        (iii) differences in punctuation and special characters; [or]

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        (iv) differences in capitalization; or
        (v) for a corporation incorporated in or authorized to do business in this state on or after May
    4, 1998, differences between singular and plural forms of words.
        (c) The director of the division has the power and authority reasonably necessary to interpret
    and efficiently administer this section and to perform the duties imposed [upon] on the division by
    this section.
        (6) A name [which] that implies that the corporation is an agency of this state or of any of
    its political subdivisions, if it is not actually such a legally established agency or subdivision, may
    not be approved for filing by the division.
        Section 2. Section 48-2a-102 is amended to read:
         48-2a-102. Name.
        (1) The name of each limited partnership as set forth in its certificate of limited partnership:
        (a) shall contain the [words] terms:
        (i) "limited partnership[,]";
        (ii) "limited[,]";
        (iii) "L.P.[,]"; or
        (iv) "Ltd.";
        (b) may not contain the name of a limited partner unless:
        (i) it is [also] the name of a general partner [or];
        (ii) it is the corporate name of a corporate general partner; or
        [(ii)] (iii) the business of the limited partnership had been carried on under that name before
    the admission of that limited partner;
        (c) may not contain:
        (i) the words:
        (A) "association[,]";
        (B) "corporation[,]"; or
        (C) "incorporated[,]" [or];
        (ii) any abbreviation [thereof,] of a word listed in this Subsection (1)(c); or

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        (iii) any [words] word or [any] abbreviation [thereof which are] that is of like import in any
    other language; and
        (d) [may not,] without the written consent of the United States Olympic Committee, may
    not contain the words:
        (i) "Olympic[,]";
        (ii) "Olympiad[,]"; or
        (iii) "Citius Altius Fortius."
        (2) [No] (a) A person or entity other than a limited partnership formed or registered under
    this title may not use in its name in this state any of the terms:
        (i) "limited[,]";
        (ii) "limited partnership[,]";
        (iii) "Ltd.[,]"; or
        (iv) "L.P." [in its name in this state except that any]
        (b) Notwithstanding Subsection (2)(a):
        (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
    its actual name in this state if it also uses:
        (A) "corporation[,]";
        (B) "incorporated[,]"; or
        (C) any abbreviation of [them is also used. Notwithstanding Subsection 48-2a-102 (2):]
    a word listed in this Subsection (2)(b)(i);
        [(a)] (ii) a limited liability company may use in its name in this state the terms:
        (A) "limited[,]";
        (B) "limited company[,]";
        (C) "L.C.[,]";
        (D) "L.L.C.[,]";
        (E) "LC[,]"; or
        (F) "LLC" [in its name in this state]; and
        [(b)] (iii) a limited liability partnership may use the terms "limited liability partnership,"

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    "L.L.P.," or "LLP" in the manner allowed in Section 48-1-45.
        (3) Except as authorized by Subsection (4), the name of a limited partnership must be
    distinguishable as defined in Subsection (5) upon the records of the division from:
        (a) the name of any limited partnership formed or authorized to transact business in this
    state;
        (b) the corporate name of any corporation incorporated or authorized to transact business
    in this state;
        (c) any limited partnership name reserved under this chapter;
        (d) any corporate name reserved under Title 16, Chapter 10a, Utah Revised Business
    Corporation Act;
        (e) any fictitious name adopted by a foreign corporation or limited partnership authorized
    to transact business in this state because its real name is unavailable;
        (f) any corporate name of a not-for-profit corporation incorporated or authorized to transact
    business in this state; and
        (g) any assumed business name, trademark, or service mark registered by the division.
        (4) (a) A limited partnership may apply to the division for approval to file its certificate
    under, or to reserve, a name that is not distinguishable upon the division's records from one or more
    of the names described in Subsection (3).
        (b) The division shall approve of the name for which application is made under Subsection
    (4)(a) if:
        [(a)] (i) the other person whose name is not distinguishable from the name under which the
    applicant desires to file:
        (A) consents to the filing in writing; and
        (B) submits an undertaking in a form satisfactory to the division to change its name to a
    name that is distinguishable from the name of the applicant; or
        [(b)] (ii) the applicant delivers to the division a certified copy of the final judgment of a court
    of competent jurisdiction establishing the applicant's right to use in this state the name for which the
    application is made.

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        (5) A name is distinguishable from other names, trademarks, and service marks registered
    with the division if it contains one or more different letters or numerals from other names upon the
    division's records. [Differences between singular and plural forms of words are distinguishing.]
        (6) The following differences are not distinguishing:
        (a) the words:
        (i) "corporation[,]";
        (ii) "incorporated[,]";
        (iii) "company[,]";
        (iv) "limited partnership[,]";
        (v) "limited[,]";
        (vi) "L.P.[,]"; or
        (vii) "Ltd.[,]" [or any];
        (b) an abbreviation [thereof] of a word listed in Subsection (6)(a);
        [(b)] (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
    "plus";
        [(c)] (d) differences in punctuation and special characters; [or]
        [(d)] (e) differences in capitalization; or
        (f) for a limited partnership that is formed in or registered as a foreign limited partnership
    in this state on or after May 4, 1998, differences between singular and plural forms of words.
        (7) The director of the division shall have the power and authority reasonably necessary to
    interpret and efficiently administer this section and to perform the duties imposed upon the division
    by this section.
        (8) A name that implies that the limited partnership is an agency of this state or any of its
    political subdivisions, if it is not actually such a legally established agency or subdivision, may not
    be approved for filing by the division.
        Section 3. Section 48-2b-106 is amended to read:
         48-2b-106. Name -- Exclusive right.
        (1) The name of each limited liability company as set forth in the articles of organization:

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        (a) shall contain the words:
        (i) "limited company[,]";
        (ii) "limited liability company[,]";
        (iii) "L.C.[,]"; or
        (iv) "L.L.C.";
        (b) may not contain:
        (i) the words:
        (A) "association[,]";
        (B) "corporation[,]";
        (C) "incorporated[,]";
        (D) "limited partnership[,]";
        (E) "limited[,]";
        (F) "L.P.[,]"; or
        (G) "Ltd.[,]"; or
        (ii) words or any abbreviation with a similar meaning in any other language; and
        (c) [may not,] without the written consent of the United States Olympic Committee, may not
    contain the words:
        (i) "Olympic[,]";
        (ii) "Olympiad[,]"; or
        (iii) "Citius Altius Fortius."
        (2) (a) A person or entity, other than a limited liability company formed or registered under
    this chapter, may not use in its name in this state any of the terms:
        (i) "limited liability company[,]";
        (ii) "limited company[,]";
        (iii) "L.L.C.[,]";
        (iv) "L.C.[,]";
        (v) "LLC[,]"; or
        (vi) "LC" [in its name in this state, except that any].

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        (b) Notwithstanding Subsection (2)(a):
        (i) a foreign corporation whose actual name includes the word "limited" or "Ltd." may use
    its actual name in this state if it also uses:
        (A) "corporation[,]";
        (B) "incorporated[,]"; or [any]
        (C) an abbreviation of [these is also used.] the words listed in this Subsection (2)(b)(i); or
        [(b) Notwithstanding Subsection (2)(a),]
        (ii) a limited liability partnership may use in its name the terms:
        (A) "limited liability partnership[,]";
        (B) "L.L.P.[,]"; or
        (C) "LLP" [in its name].
        (3) Except as authorized by Subsection (4), the name of a limited liability company must be
    distinguishable as defined in Subsection (5) upon the records of the division from:
        (a) the name of any limited partnership formed or authorized to transact business in this
    state;
        (b) the name of any limited liability company formed or authorized to transact business in
    this state;
        (c) the corporate name of any corporation incorporated or authorized to transact business in
    the state;
        (d) any limited partnership name reserved under this chapter;
        (e) any limited liability company name reserved under this chapter;
        (f) any corporate name reserved under:
        (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act, as amended[,]; or
        (ii) Title 16, Chapter 6, Utah Nonprofit Corporation and Cooperative Association Act, as
    amended;
        (g) any fictitious name adopted by a foreign corporation, limited partnership, or limited
    liability company authorized to transact business in this state because its real name is unavailable;
        (h) any corporate name of a not-for-profit corporation incorporated or authorized to transact

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    business in this state; and
        (i) any assumed name, trademark, or service mark registered by the division.
        (4) (a) A limited liability company may apply to the division for approval to file its articles
    of organization under or to reserve a name that is not distinguishable upon the division's records
    from one or more of the names described in Subsection (3).
        (b) The division shall approve the name for which the company applies under Subsection
    (4)(a) if:
        [(a)] (i) the other person whose name is not distinguishable from the name under which the
    applicant desires to file:
        (A) consents to the filing in writing; and
        (B) submits an undertaking in a form satisfactory to the division to change its name to a
    name that is distinguishable from the name of the applicant; or
        [(b)] (ii) the applicant delivers to the division a certified copy of the final judgment of a court
    of competent jurisdiction establishing the applicant's right to use the name in this state.
        (5) A name is distinguishable from other names, trademarks, and service marks registered
    with the division if it contains one or more different letters or numerals from other names upon the
    division's records. [Differences between singular and plural forms of words are distinguishing.]
        (6) The following differences are not distinguishing:
        (a) the [words] terms:
        (i) "corporation[,]";
        (ii) "incorporated[,]";
        (iii) "company[,]";
        (iv) "limited partnership[,]";
        (v) "limited[,]";
        (vi) "L.P.[,]";
        (vii) "Ltd.[,]";
        (viii) "limited liability company[,]";
        (ix) "limited company[,]";

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        (x) "L.C.[,]"; or
        (xi) "L.L.C.[,]"[or any];
        (b) an abbreviation of [these words] a word listed in Subsection (6)(a);
        [(b)] (c) the presence or absence of the words or symbols of the words "the," "and," "a," or
    "plus";
        [(c)] (d) differences in punctuation and special characters; [or]
        [(d)] (e) differences in capitalization; or
        (f) for a limited liability company that is formed in or registered as a foreign limited liability
    company in this state on or after May 4, 1998, differences between singular and plural forms of
    words.
        (7) The director of the division shall have the power and authority reasonably necessary to
    interpret and efficiently administer this section and to perform the duties imposed [upon] on the
    division by this section.
        (8) A name that implies that a limited liability company is an agency of this state or any of
    its political subdivisions, if it is not actually such a legally established agency or subdivision, may
    not be approved for filing by the division.
        (9) The exclusive right to a name may be reserved by:
        (a) any person intending to:
        (i) organize a limited liability company under this chapter; and [to]
        (ii) adopt that name;
        (b) any limited liability company or any foreign limited liability company registered in this
    state intending to adopt that name;
        (c) any foreign limited liability company intending to:
        (i) register in this state; and [intending to]
        (ii) adopt that name; and
        (d) any person intending to:
        (i) organize a foreign limited liability company[ and intending to];
        (ii) have [it] the company register in this state; and

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        (iii) adopt that name.
        (10) (a) The reservation described in Subsection (9)(a) shall be made by filing with the
    division an application executed under penalty of perjury by the applicant to reserve a specified
    name.
        (b) If the division finds that the name is available for use by a limited liability company or
    a foreign limited liability company, it shall reserve the name exclusively for the applicant for a
    period of 120 days. The name reservation may be renewed for any number of subsequent periods
    of 120 days.
        (c) The exclusive right to a reserved name may be transferred to any other person by filing
    with the division a notice of the transfer executed under penalty of perjury by the applicant for whom
    the name was reserved and specifying the name and address of the transferee.

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