Amended and updated notes on section 190 of Companies Act 2013. Detail discussion on provisions and rules related to contract of employment with managing or whole-time directors.
Chapter XII (Sections 173–195) of the Companies Act, 2013 (CA 2013) deals with the provisions related to meetings of board and its powers. Section 190 of CA 2013 provides for contract of employment with managing or whole-time directors.
Recently, we have discussed in detail section 189 (Register of contracts or arrangements in which directors are interested) of CA 2013. Today, we learn the provisions of section 190 of Companies Act 2013.
The provisions of section 190 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 190 of the Companies Act 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XII |
| Chapter Name | Meetings of Board and its Powers |
| Section No. | 190 |
| Section Name | Contract of employment with managing or whole-time directors |
| Monthly Updated Edition | Company Law PDF |
Section 190 of Companies Act 2013: Contract of employment with managing or whole-time directors
Section 190 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
(1) Every company shall keep at its registered office, —
- (a) where a contract of service with a managing or whole-time director is in writing, a copy of the contract; or
- (b) where such a contract is not in writing, a written memorandum setting out its terms.
(2) The copies of the contract or the memorandum kept under sub-section (1) shall be open to inspection by any member of the company without payment of fee.
(3) If any default is made in complying with the provisions of sub-section (1) or sub-section (2), the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for each default.
(4) The provisions of this section shall not apply to a private company.