Problems of One Person Company (3) Essay

Problems of One Person Company One person company has raised controversy about its recognition as a company because it is conflicted with the contractual concept of companies, and it is a m ultiplicity of partners and what is not characterized by one Person Company. One person company is conflicted with the contractual concept of companies: The concept of the company means multiplicity, in other meaning multiplicity between partners. As that company’s contract is a contract convened between more than o ne partner it is a main condition to establish a company which led to refusal to recognize one Person Company and its legal system by much legislation.

And the basis for the establishing of one Person Company is different in order to be in line with the pr esence of one Person Company. And the legal provisions governing all companies don’t help us to solve the problems of a company. The most important characteristic of the company is: There is no conflict between the interests of the partners in the company and the contract of the company is based in the common collective interests.

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But there are some exceptions: – The French legislator authorized the establishment of one Person Company where the French company’s law stipulates that a limited liability compa ny arises from one person or several persons who cannot afford the losses of the company except by their shares in the capital.Is contrary to the idea of the company taking into account the evolution of the concept of the functions of the state economic ally and socially. The Egyptian Legislator at the begi nning refused to recognize One Person Company, even if all the shares of partners in the hand of one partner considered the company is subjected to the force of the law , if not changed in six months. After that, the Egyptian legislator set an exception to the general rules allowed the existence of O ne Person Company in the scope of public sector, below private sector. The existence of O ne Person Company is limited only to the state without ordinary or legal persons. But in the end the law no 4 of 2018which was issued regarding the amendment of the provisions of the law of companies and one person company’s license to any legal person. Due to the special nature of the company’s contract the contractual i dea of the company has been reduced. The modern concept of the company is based on regulation, which is a set of provisions derived from the law not contract. Other problems that face one person company: ¶ That one person company doesn’t go well with the legal community. ¶ One person company cannot establish another one person company. ¶ Performing activi ties such as insurance, banking, accepting deposits and investing money for its clients. ¶ Establishment of a one person company is necessary to keep pace with the needs of the market and advanced trade and investment activities. So if this new species is adopted it must be find explicit rules and regulations that help solve the problems of O ne Person Company and prevents its exploitation to circumvent commercial laws and regulations or to confuse financial liabilities.Legislation adopting a one person company system must take into account that Its provisions include explicitly stating whether a legal person and a natural person are permitted to establish a one person company or whether the matter is limited to a legal person only and a minimum capital of the company and is fully paid because it is the sole guarantor of the indebtedness of the company. This is in addition to the need to adopt a system that specifies the provisions of a One Person C ompany in detail and its statement and procedures of regulations and publicity and methods of management and transfer of ownership and resolution. W e also propose that the text of the liability of the owner of the company of O ne Person C ompany to his own money , if it is proven that there is fraud or bad faith in the use of the company or to cancel it before the end of its duration and achieve its objectives. Also there is a difference between a one per son company and an individual Enterprise in some provisions. The most important is that one person company is responsible for limited partner’s sole share , the individual enterprise is the owner unlimited liability and includes personal funds , and this i s considered one of the most important features of this form of companies. With regard to the characteristics of a one -person company, the most important characteristic of the owner’s limited liability means limited liability is that the owner is responsib le only within the amount of his share in the capital of the company. In other words, the liability of the owner is limited in the face of others by the amount of capital registered in the system of in corporation and registered w ith the concerned authoriti es. The company in all its assets shall be liable for any obligations to others. This form of companies the fever of the rest of the owner’s money and makes them in the insurer in case the company suffered any losses. The individual establishment shall be established in accordance with the provisions of the Investment Law No. 77 of 2017. One or more of theactivities stipulated in the first article of the said law shall be in accordance with the conditions and conditions prescribed for each activity. The in dividual establishment shall establish one natural person and shall be considered a merchant in the rule of law. The sole proprietorship of the individual establishment is one hundred thousand Egyptian pounds. The individual establishment shall not acquire a legal personality independent of its owner. It shall be committed to all the debts of the establishment in its own funds. The One Person Company is subject to the provisions of the Companies Law No. 159 of 1981, and provided a minimum capital of the company, which is fifty thousand pounds paid full at the time of incorporation. The founder of the company has limited responsibilities within the limits of the company’s capital. It should be noted that it applies to the companies of one person the provis ions of limited liability companies in the Companies Law No. 19 of 1981 so that no One P erson C ompany . It turns out that despite the problems faced by the One Person Company but it is a boom and a new type of companies and have many characteristics. It is intended to enable the small investor to establish a single company in a unique form of companies as well as to protect him from the unlimited liability in some other companies to make the company have a special financial liability for the financial asset s of the founder of the company, which encourages many investors. W e have defined the one -person company and what distinguishes it from other types of companies as well as the legal provisions and controls that govern them, and the difference between them and the individual establishments that may be similar in some provisions

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