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Search date: 10-11-2017 Return to current date: Click here

Single person may form company

New law draft in the making

Talha Bin Habib | November 10, 2017 00:00:00

A single person may form a commercial firm under a provision of the companies' law being updated along with some other major business-stimulating measures.

Official sources said the government is considering incorporating some new provisions, including one allowing individuals to form any company, into the updated Companies Act.

The other provisions are formation of an appellate tribunal to resolve legal matters without wasting much time, widespread automation of companies' work and submission of annual company reports online.

Earlier, the Ministry of Commerce (MoC) had received some recommendations from the stakeholders on how to update the law, they added.

"We got most of the recommendations from the stakeholders. We hope we will be able to prepare the draft Companies Act within a month," Md Obaidul Azam, director, trade organisations (DTO), told the FE.

He said the recommendations the ministry had received so far were being scrutinised before preparing a draft for updating the companies' act.

Earlier, different trade bodies had sent their respective recommendations to the MoC for incorporation into the law.

The MoC will hold a meeting with the country's apex trade body after assessing the recommendations and suggestions, the ministry official said.

Talking to the FE, a leader of an influential trade body said they had sent some recommendations/suggestions to the MoC for the new Companies Act for betterment of the country's trade and business. According to Section 2 (1) (c) of the Companies Act 1994, 'Company means a company formed and registered under this Act or an existing company'.

Thus, a company is an association of persons formed under the Companies Act 1994 with a view to achieving some common objectives. Though a company is regarded a legal person, it possesses similar rights and owes similar obligations like a natural person. Now any individual fulfilling the new criteria may be allowed to form a firm.

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