It does work! Sorry for the confusion.

>>You can use CreateObject() at any moment.
>
>Check the following code:
>

>x=createobject('login')
>x.show()
>debug
>read events
>
>define class login as form
>    frmDM = null
>    procedure init
>       frmDM = createobject('datamanager')  && nowhere in sight!!!
>    endproc
>enddefine
>
>*-- business object
>define class datamanager as form
>   datasession = 2
>   visible = .F.
>enddefine
>
>*--- this works though but this is not how I need it to be (not encapsulated)
>y=createobject('datamanager')
>x=createobject('login')
>x.show()
>debug
>read events
>