Company law is being modified by keeping the scope of company formation by single person
Jannatul Panna of DOT
Government is going to amend the “Companies Act 1994” by keeping the scope of forming of a company by a single person. This is why a new section styled “One person company” is going to be added in the existing law.
This decision was taken at a meeting presided over by Law minister Anisul Huq. The meeting was also attended by Minister of Finance AHM Mostafa Kamal, Private Industry and Investment advisor to PM Salman F Rahman, former Commerce Minister Tofael Ahmed and representatives from different ministries and government as well as private financial organizations.
This meeting was organized by “Legislative Research and Reform Project” of the Legislative and Parliamentary Affairs Division. Senior Secretary of the Division Mohammad Shahidul Haque facilitated the meeting. A follow-up counseling meeting will be held on October 27 regarding revision of the law.
The new law defines “One person company” as a private company whose share holder will be only one natural person. Apart from forming such one person company, the law is being revised by providing the opportunity to form such company, attracting national and international investment by creating investment friendly environment in Bangladesh, making easier trade and investment, emphasizing the interests of ordinary creditors and minority shareholders.
The meeting held discussion on forming “one person company,” holding AGM of such company, handing over of shares, number of directors and share transfer after the death of proprietor, acquisition of one person company, process of transfer, balance sheet, revenue collection method, appointing liquidators and method of returning capital before its dissolution etc.
Translated by Audity Falguni.