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InterviewSolution
| 1. |
Features of one man company |
| Answer» \tPrivate company: Section 3(1)(c) of the Companies Act says that a single person can form a company for any lawful purpose. It further describes OPCs as private companies.\tSingle member: OPCs can have only one member or shareholder, unlike other private companies.\tNominee: A unique feature of OPCs that separates it from other kinds of companies is that the sole member of the company has to mention a nominee while registering the company.\tNo perpetual succession: Since there is only\xa0one\xa0member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member. This does not happen in other companies as they follow the concept of perpetual succession.\tMinimum one director: OPCs need to have minimum one person (the member) as director. They can have a maximum of 15 directors.\tNo minimum paid-up share capital: Companies Act, 2013 has not prescribed any amount as minimum paid-up capital for OPCs.\tSpecial privileges: OPCs enjoy several privileges and exemptions under the Companies Act that other kinds of companies do not possess. | |