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FORMATION OF A COMPANY 155 a particular metal to produce arranged by floating a company by the carburettor. If that metal the promoters. The idea may be is not produced in the country abandoned because of the lack of and because of poor political financial feasibility of the project. relations, it can not be imported (c) Economic feasibility: Sometimes from the country which produces it so happens that a project is it, the project would be technically technically viable and financially unfeasible until arrangements are feasible but the chance of it being made to make the metal available profitable is very little. In such from alternative sources. cases as well, the idea may have to (b) Financial feasibility: Every be abondoned. Promoters usually business activity requires funds. take the help of experts to conduct The promoters have to estimate these studies. It may be noted the fund requirements for the that these experts do not become identified business opportunity. If promoters just because they are the required outlay for the project assisting the promoters in these is so large that it cannot easily studies. be arranged within the available Only when these investigations means, the project has to be given throw up positive results, the up. For example, one may think promoters may decide to actually that developing townships is very launch a company. lucrative. It may turn out that (iii) Name approval: Having decided the required funds are in several incorporate to a company, the crores of rupees, which cannot be promoters have to select a name for Name Clause A name is considered undesirable in the following cases: (a) If it is identical with or too closely resembles the name of an existing company (b) If it is misleading. It is so considered if the name suggests that the company is in a particular business or it is an association of a particular type when it is not true (c) If it is violative of the provisions of ‘The Emblem and Names (Prevention of Improper Use) Act 1950, as given in the schedule to this Act. This schedule specifies, inter alia, the name, emblem or official seal of the UNO and its bodies like WHO, UNESCO etc. Government of India, State Governments, President of India or Governer of any State, the Indian National Flag. The Act also prohibits use of any name which may suggest patronage of Government of India, or any state government or any local authority Reprint 2026-27