17 April 2009
A company in which a particular person holds the whole, or practically the whole, of the share capital is termed as 'one-man Company. Nevertheless there may be other associates also, but these associates are generally his relatives, friends or nominees. This governing person is generally the managing director of the company and has full control over the company. This is a way to have the benefits of the corporate status and limited liability of the company. Even though only one person manages the entire working in such a company, however such type of companies is legal. The formation of one-man companies has definitely been to the drawback of creditors because they cannot continue against the actual proprietors.
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