Section 14. Mode of forming a company.—

(1) Any-

(a) three or more persons associated for any lawful purpose may, by subscribing their names to a memorandum of association and complying with the requirements of this Act in respect of registration, form a public company; or

(b) two or more persons so associated may in the like manner form a private company; or

(c) one person may form a single member company by complying with the requirements in respect of registration of a private company and such other requirement as may be specified. The subscriber to the memorandum shall nominate a person who in the event of death of the sole member shall be responsible to-

(i) transfer the shares to the legal heirs of the deceased subject to succession to be determined under the Islamic law of inheritance and in case of a non-Muslim members, as per their respective law; and

(ii) manage the affairs of the company as a trustee, till such time the title of shares are transferred:

Provided that where transfer by virtue of this sub-section is made to more than one legal heir, the company shall cease to be a single member company and comply with the provisions of section 47.

(2) A company formed under this section may be a company with or without limited liability, that is to say-

(a) a company limited by shares; or
(b) a company limited by guarantee; or
(c) an unlimited company.