Contract of employment with managing or whole- time directors (Section 190 of the Companies Act, 2013) :

Section 190 of the Companies Act, 2013 came into force from 1st April, 2014 which provides for Contract of employment with managing or whole- time directors. According to this section:

(i) 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.

(ii) The copies of the contract or the memorandum shall be open to inspection by any member of the company without payment of fee.

(iii) Penalty for default: 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.

(iv) The provisions of this section shall not apply to a private company.