Contract of employment with managing or whole-time directors
📚 Law Minded summary
Where a company has a contract of service with a managing or whole-time director, it keeps a copy at its registered office — or a written memorandum of the terms if the contract is not in writing.
Members can inspect it without charge. A private company is exempt.
time director.— (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.
All sections in Chapter XII — Meetings of Board and Its Powers