Under the Companies Act 2006, which of the following words requires prior approval from the Secretary of State to be used in a company name?

Answer options:

Global

Enterprises

Royal

Solutions

How to approach this question

Identify 'sensitive' words that are restricted in company names.

Full Answer

C.Royal✓ Correct

The Companies Act 2006 restricts the use of 'sensitive' words in company names to prevent the public from being misled. Words implying a connection to the Crown (e.g., 'Royal', 'King'), government, or certain professions (e.g., 'Bank', 'University') require prior approval from the Secretary of State.

Common mistakes

Assuming any grand-sounding word is restricted.

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