One-man companies are the companies in which one man holds virtually the whole of the share capital with a few extra members holding the remainder, who may be his relations or nominees. Being the largest holder such a person is generally the sole or the managing director and enjoys complete control over the company. This is done with a view to fulfill the statutory requirement of at least seven members in the case of a public company and at least two members in the case of a private company. He is, thus, in a position to enjoy the profits of the business with limited liability. Such types of companies are perfectly valid and not illegal. As already established in saloman v. saloman & co. ltd case, such companies are legal entities distinct from the members.