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Cabinet okays draft law on formation of one-person co

Staff Correspondent | Published: 18:51, Jul 20,2020 | Updated: 22:57, Jul 20,2020

 
 

The cabinet on Monday gave the final approval to a draft law with a provision allowing formation of a company by one entrepreneur to attract more investments and improve the country’s position as regards ease of doing business.

The commerce ministry placed the draft Companies (2nd Amendment) Bill 2020 before a virtual cabinet meeting chaired by prime minister Sheikh Hasina from her Ganabhaban residence while the ministers and secretaries concerned  joined it from the secretariat.

‘We have no such provision of forming a one-person company in which one could be the owner and sole shareholder. The cabinet today has given the final approval to the draft Companies (2nd Amendment), Bill 2020 with a provision of forming a company by one entrepreneur that would bring more investments,’ cabinet secretary Khandker Anwarul Islam told at a press briefing after the meeting.

The existing law allows formation of a company with minimum two persons and maximum 50, excluding the persons appointed to the company.

The proposed law allows online registration of a company alongside holding its board meeting within 21 days of getting notice instead of the existing 14 days, the cabinet secretary said.

He said that the proposed amendment had given importance to paying the debts of a company in case of its winding up.

The owner of a company has to remain present physically if he/she wants to transfer his/her shares to another person or he/she can transfer his/her shares by calling a commission in his/her house or any other place, Anwarul said.

He said the proposed amendments to the company law would help raise Bangladesh’s position on the index of ease of doing business, attract more investments and develop entrepreneurship.

Presiding over the meeting, the prime minister asked the agencies concerned to make sure the flood-affected people get relief.

She asked all concerned to remain prepared against the flooding as more areas were being affected, according to the cabinet secretary.

The cabinet also endorsed the draft of Bangladesh Travel Agencies (Registration and Control) (Amendment) Bill, 2020 with a provision of maximum six-month jail or Tk 5 lakh fine or both in case of violation of the proposed law.

As per the draft law, the travel agencies could not engage themselves in recruiting and visa-related activities rather they could only work on ticket confirmation, the cabinet secretary said, adding that the recruiting and visa-related activities required having separate licences.

Licence for operating a travel agency could be renewed within six months on its expiry by paying fine, he said.

He said that the ownership of licence was transferrable.

The travel agencies could open their branch offices at home and abroad as per the draft law, he added.

Monday’s cabinet meeting also decided to observe June 4 as the ‘National Tea Day’ every year by including the day in the Kha category list.

It also approved the draft of a proposed technical cooperation agreement to be signed between the Civil Aviation Authority of Bangladesh and the Directorate General of Civil Aviation, France.

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