Mr A a member of A Ltd wanted to inspect the contract of service memorandum of terms of appointment ...........

Companies Act-Phase (I & II) Board-powersandMeetings

Mr. A a member of A Ltd wanted to inspect the contract of service / memorandum of terms of appointment of the employment of M.D. / W.T.D of A Ltd. He was informed that such a record was not maintained. What are the penal provisions applicable to the Company

Will your answer for change if the Company was a Private Company rather than a Public Company.

Yes, the Fine for Private Company shall be half the fines notified for Public Company

Yes, the Fine for Private Company shall be twice the fines notified for Public Company

Yes, as provisions are Not Applicable to the Private Company

No, as no distinction is made under Act for Public and Private Comp

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Explanation:

Section 190. Contract of employment with managing or whole-time directorsEffective from 01-04-2014
(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 .