- The person has to give a separate name and legal identity to the Company, under which all the activities of the business are to be carried on. This ensures that a separate legal entity is formed.
- The person has to nominate another person, with that person’s written consent as a nominee to the OPC and the written consent of such person shall also be filed with the Registrar at the time of incorporation along with its Memorandum and Articles. This person will be the default and ad hoc member in case of the existing sole member’s death or disability. This provision will ensure perpetuity and continuity to the life of the Company. The golden rule of “members may come and go, but the Company must live on” holds good.
- There can be a possibility where the original member loses trust in the nominated person or the nominated person is incapacitated or takes back his consent.
- In such a case the nominated member may be changed by the original member. Any such change has to be intimidated to the Registrar by the OPC within prescribed time.
- On the death of the sole member, the nominee has all shares and the rights and liabilities of the deceased person. The board of the company shall inform the nominee regarding entitlement of such shares and rights and liabilities.