There is often much confusion and misinformation (usually disseminated by the local bar stool expert) as to what type of entity a Single Member Company actually is. Let's clear it up then!
Single Member
A Single Member Private Limited Company does not, first and foremost ,mean that the company can have only one director!
A member is a shareholder or in effect a company owner. In many small companies the company members i.e. shareholders may indeed be one and the same as the company directors.
A Single Member Company is therefore no different from any other private limited company other than the fact that the entire issued share capital is held or owned by one single/sole person i.e the single member hence, the designation "single member company".
Single Member
A Single Member Private Limited Company does not, first and foremost ,mean that the company can have only one director!
A member is a shareholder or in effect a company owner. In many small companies the company members i.e. shareholders may indeed be one and the same as the company directors.
A Single Member Company is therefore no different from any other private limited company other than the fact that the entire issued share capital is held or owned by one single/sole person i.e the single member hence, the designation "single member company".
This sole person is the sole beneficial owner of the company and is the company's only member/shareholder i.e. the single member.
A Single Member company requires that a minimum of two persons are still in place to act as company directors - member refers to shareholder and not to director! Note that this is likely to change post 2012 when it is likely that all stages of the new Companies Bill has been effected allowing a company to effectively have in place only one person.
There are some specific requirements with regard to the drafting of the memorandum & articles for a Single Member company.
Naturally, Business & Company Formations provide a company formation document drafting service to cater for Single Member owned limited company formations.
A Single Member company requires that a minimum of two persons are still in place to act as company directors - member refers to shareholder and not to director! Note that this is likely to change post 2012 when it is likely that all stages of the new Companies Bill has been effected allowing a company to effectively have in place only one person.
There are some specific requirements with regard to the drafting of the memorandum & articles for a Single Member company.
Naturally, Business & Company Formations provide a company formation document drafting service to cater for Single Member owned limited company formations.
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