Dhaka: The cabinet on Monday approved in principle the draft of ‘The Company (amendment) Law, 2018’ incorporating a provision allowing formation of a ‘one-man company’.

‘The proposed law defines a ‘one-man company’ as a company to be formed with one person,’ Cabinet Secretary Mohammad Shafiul Alam told reporters after the regular cabinet meeting held at Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair, reports the UNB.

The cabinet secretary said the proposed amendment to the company law brought a new concept which was unfamiliar to the country’s business arena so far.

‘This concept doesn’t exist in our law, but different countries of the world are following it,’ he said.

Alam said the law has been proposed to bring a ‘one-man company’ under the purview of the legal framework.

In the existing law, he said, there is a provision for formation of a company by keeping limited its members to 50 excluding the persons appointed to the company.

‘But this provision will not be applicable to the constitution of a ‘one-man company, and in the case of such a company, it can be formed with one person,’ the cabinet secretary added.

Alam said the cabinet also gave the final approval to the draft of ‘The Bangladesh Film and Television Institute (Amendment) Law, 2018,’ aimed at further flourishing mass media like film and television.