[ad_1]
The ‘Company Bill (Second Amendment) 2020’ has been passed in Parliament today with the opportunity to open a ‘sole proprietorship’. When Commerce Minister Tipu Munshi proposed to pass the bill in Parliament, it was approved unanimously.
After the bill was introduced in Parliament on September 8, it was sent to the Standing Parliamentary Committee of the Ministry of Commerce for scrutiny and reporting to Parliament.
Under the Corporations Law, private corporations are now governed by boards of directors. The directors and chairmen of this board must follow certain rules.
According to the definition of law in the bill, ‘sole proprietorship’ is a company whose board of directors will have only one member. According to the bill, the paid share capital of an individual company will be at least Tk 25 lakh and not more than Tk 5 crore.
In the bill presented in parliament, the paid-in capital was kept at least Tk 50 lakh and not more than Tk 10 crore. The parliamentary committee made changes to this section. The bill also stated that the annual turnover for the immediately preceding financial year would be at least Tk 2 crore and not more than Tk 100 crore. The parliamentary committee has won one crore and 50 crore rupees here. That has been approved in Parliament.
If the paid-up share capital and annual turnover exceed the condition, a person’s company can become a limited liability company or, where appropriate, a public limited company, subject to conditions.
The bill stipulates that a sole proprietorship must hold at least one board meeting a year.
As the director and the main person are one, these companies will be exempt from the rules in the process of meeting the board and making decisions.
The proposed law states that if a single member dies, their nominee will be entitled to all shares.
In the event of the transfer of shares of said company, the bill seeks to ensure the personal presence of the transferor and the signing of the transfer deed through the commission.
The bill states that creditors should be given priority in repaying loans if the business goes up.
The company law has been amended to provide for online registration.
Current law provides for a board meeting with 14 days notice. The proposed law proposes that it be 21 days.
