The North-East Assembly is considering changing its name to avoid confusion with the elected body which was rejected by voters in last year's referendum.

The region gave a resounding 78% `no' vote to an elected regional assembly in November.

But the existing body, established in 1999 containing councillors, business representatives, trade unionists and members of voluntary groups, continued to operate under the name North-East Assembly.

The assembly, based at Newcastle Guildhall was set up as a shadow body in advance of the referendum. Despite the `no' vote, Deputy Prime Minister John Prescott has left them in place with a statutory role to produce regional strategies for economy, planning and housing.

Yesterday, its chairman, Alex Watson, said: "We need to re-launch the assembly and maybe even change its name.

"We need to do things differently and engage with the public better than we have done, because people didn't appreciate the fact that an assembly existed."

The move comes as the assembly is planning to convert itself into a limited company from its present status as an unincorporated association.

Advice given to North Tyneside Council this week confirmed members of such a body are personally liable for any contracts it enters into, such as those with its 18 staff.

Assembly interim director Paul Wilding said: "Whether or not the members would be individually liable is a question that would be tested by a legal case." But Mr Watson said: "It is a risk and we've got to make sure we have the legal and insurance cover in case something happens.

"I think there was some complacency there before, because we expected to get a directly elected assembly."

Neil Herron, a long-time campaigner against the assembly said: "Each one of those members could face massive personal consequences as it stands.

"This organisation has been a shambles right from the beginning. As for changing the name, it's staggering beyond belief."

Conservative Euro-MP Martin Callanan said: "This obsession with bodies who think they can gain public acceptability by changing their name is completely ridiculous. People in the North-East voted by an enormous margin against a regional assembly, elected or otherwise, and the best thing it could do is abolish itself."