Starting up a second LTD company Question

[briangriffin]

This is just a question out of interest,

Why would a local business owner of a Private limited company set up a second limited company in a very similar name.

Background tot he story is Him and business partner owner 50% each of the first business but subsequently fell out, within days he'd set up another limited company. Does this really help him out in anyway if person B has equal voting rights in the original company?

Not sure if relevant but its a small mixed good shop.

[Eric Mc]

The other person has no involvement in the second company so he has no power or influence over that new company from within.

He does have, of course, some legal rights to contest any attempt by the new company to pass itself off as the old company.