In a One Person Company, only one person is the sole member. The Companies Act requires a nominee to be named at incorporation. What event triggers the nominee becoming a shareholder?

1. An OPC has only one member as shareholder by definition. 2. The Act requires that member to nominate one person at incorporation. 3. The nominee becomes a shareholder only on the death or incapacity of the original member. 4. Until then the nominee holds no voting or financial rights in the OPC. _Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._