Section 190: Contract of employment with managing or whole-time director
Companies Act, 2013 · Chapter XII: Meetings Of Board And Its Powers · In force
This section requires companies to maintain and make available contracts of employment with managing or whole-time directors, with certain penalties for non-compliance, but exempts private companies.
Penalty
(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.
The section, clause by clause
What the section says
In plain terms
(1)Every company shall keep at its registered office,—
Every company must keep a copy of a written contract of service with a managing or whole-time director, or a written memorandum of the terms if the contract is not in writing, at its registered office.
(1)(a)where a contract of service with a managing or whole-time director is in writing, a copy of the contract; or
(1)(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.
Members of the company can inspect the copies of the contract or memorandum without paying a 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.
If a company fails to comply with the requirements, it will be liable to a penalty of twenty-five thousand rupees and each defaulting officer will be liable to a penalty of five thousand rupees.
(4)The provisions of this section shall not apply to a private company.
These requirements do not apply to private companies.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.