Companies Act Section 193 — Contract by One Person Company
CHAPTER XII MEETINGS OF BOARD AND ITS POWERS
Commercial / Corporate
Summary
Sub-section (1) deals with contracts between a One Person Company and its sole member, who is also its director. If such a contract is not in writing, the company must record the terms of the contract or offer either in a memorandum or in the minutes of the first Board of Directors meeting held after the contract is made. This requirement does not apply to contracts entered into in the ordinary course of the company's business.
Sub-section (2) requires the company to inform the Registrar about every contract that is recorded in the minutes of the Board of Directors meeting under sub-section (1). This information must be given to the Registrar within fifteen days from the date the Board of Directors approves the contract.
Official Text
(1) Where One Person Company limited by shares or by guarantee enters into a contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the Board of Directors of the company held next after entering into contract:
Provided that nothing in this sub-section shall apply to contracts entered into by the company in the ordinary course of its business.
(2) The company shall inform the Registrar about every contract entered into by the company and recorded in the minutes of the meeting of its Board of Directors under sub-section (1) within a period of fifteen days of the date of approval by the Board of Directors.