Govt going to amend Companies Act 1994

The government has moved to amend the Companies Act, 1994, incorporating a provision on forming a company by a single person, reports BSS.

A consultative meeting was held today in this regard at law ministry with the stakeholders. Legislative Research and Reform Project of Legislative and Parliamentary Affairs Division organized the meeting on Sunday (Sept 8).

According to the sources, a new section named ‘Single person company’ is going to be included. This company will be defined as such 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.

The next meeting is scheduled to be held on Oct 27.