Govt to amend law for single person company

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 definition of the amended law, “One Person Company” will mean such a private company where a single person having a natural entity will be the shareholder, the law ministry said in a statement.

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.

AHM Mustafa Kamal, finance minister; Salman F Rahman, prime minister’s adviser on private industry and investment, and Tofail Ahmed, chairman of the parliamentary standing committee on commerce ministry, also attended the meeting.