What Is A One-Person Company

Abstract

In an attempt to summarize the most important points highlighted in this research, we can almost say that the Libyan legislator still adheres to the traditional idea that the company is a contract, and did not address the concept of a one-person company, and as an obvious result, it did not mention it, while Law No. 23 of 2010 defined companies in general, as stipulated in the draft of the Commercial Companies Law, as any economic activity whose capital is fully owned by one natural or legal person, and its owner is only liable for the amounts of its capital. The one-person company is distinguished by several characteristics that distinguish it, the most important of which is that it consists of one partner, so that his liability is limited, but comparative legislation does not agree with the direction taken by the Libyan legislator. French legislation worked hard in the law issued on July 11, 1985 to recognize the one-person company, and the English legislator followed suit, as the latter adopted the trust system that requires concentrating projects in one hand, which is very similar to the One person, while Egyptian legislation remained committed to the idea of the unity of financial liability, which means that a person has one financial liability that does not multiply with the multiplicity of obligations, and is considered a guarantor of the fulfillment of his debt. As for the position of the Libyan legislator on this type of companies, the draft Companies Law did not abandon the idea of the contract as the basis for the company, but opened the door wide to the individual will in order to establish the company. Although the subject of the research focuses on the one-person company, it is an exception to the general rule, which is the participation between two or more persons. Therefore, the legislator must keep pace with legislative developments and keep pace with comparative legislation, and not adhere to traditional trends.