The amendment to the act will add a new section named ‘single person company’
The government has moved to amend the Companies Act, 1994, incorporating a provision on forming a company by a single person.
The decision came at a consultative meeting, organized by Legislative Research and Reform Project of Legislative and Parliamentary Affairs Division, among stakeholders at law ministry on Sunday.
According to the sources, a new section named ‘single person company’ will be included where the company will be defined as an institution where a single natural entity would be its shareholder.
Apart from creating an opportunity for forming a company by a single person, the law is being amended to attract investment from home and abroad by creating an investment-friendly environment, easing business processes and giving priority to safeguarding the interests of the general creditors of the companies and minority shareholders.
Presided over by Law, Justice and Parliamentary Affairs Minister Anisul Huq, the meeting was attended by Finance Minister AHM Mustafa Kamal, Prime Minister’s Private Industry and Investment Adviser Salman Fazlur Rahman, President of Parliamentary Standing Committee on Ministry of Commerce Tofail Ahmed and Senior Secretary Asadul Islam, among others.
Legislative and Parliamentary Affairs Division Senior Secretary Mohammad Shahidul Haque conducted the meeting.
The next meeting is scheduled to be held on October 27.