The government has decided to amend the Companies Act 1994 allowing a single person to float a company and include a new section titled “One Person Company” in the amended law.
According to the amended law, definition of the ‘one person company’ says a private company can be formed by one natural person and he or she will be the lone shareholder of the company. On November 26 last year, the cabinet approved in principle a draft Company (Amendment) Act 2018 where a provision was included giving a go-ahead to the concept.
The law minister yesterday said the company law will be amended to attract new domestic and foreign investments, boost ease of doing business and protect the interests of general creditors of companies and their minority stakeholders by creating an investment-friendly environment.
The press release was issued after an advisory meeting held at the law ministry between the representatives concerned of the government and stakeholders. The legislative research and reform project under the legislative and parliamentary affairs division of the law ministry organised the meeting with Law Minister Anisul Huq in the chair.
The meeting’s discussion included formation of ‘one person company’, the procedure of holding annual general meeting of such companies, handing over of shares, number of directors, taking over of company by heirs of company owner, acquisition of such company by others, and the issue of balance sheet.