Under the Companies Act, 2017 of Pakistan, a one-person company is best described as:
Correct answer: B. A private company with a single member
- A. A public company with one director
- B. A private company with a single member
- C. A partnership with one registered partner
- D. A company owned by one government department
Explanation
A one-person company is a form of private company formed with only one member. Its single-member structure does not remove the company’s separate legal identity.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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