What is Restriction on non-cash transactions involving directors? What is contract by One Person Company? Section 192 and 193 of Indian Companies Act 2013

Restriction on non-cash transactions involving directors and Contract by One Person Company are defined under Section 192 and 193 of Indian Companies Act 2013. Provisions under these sections are:

Section 192 of Indian Companies Act 2013 "Restriction on non-cash transactions involving directors"

(1) No company shall enter into an arrangement by which -

(a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or

(b) the company acquires or is to acquire assets for consideration other than cash, from such director or person so connected, unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company,

 

approval under this sub-section shall also be required to be obtained by passing a resolution in general meeting of the holding company.

(2) The notice for approval of the resolution by the company or holding company in general meeting under sub-section (1) shall include the particulars of the arrangement along with the value of the assets involved in such arrangement duly calculated by a registered valuer.

(3) Any arrangement entered into by a company or its holding company in contravention of the provisions of this section shall be voidable at the instance of the company unless -

(a) the restitution of any money or other consideration which is the subject matter of the arrangement is no longer possible and the company has been indemnified by any other person for any loss or damage caused to it; or

(b) any rights are acquired bona fide for value and without notice of the contravention of the provisions of this section by any other person.

Section 193 of Indian Companies Act 2013 "Contract by One Person Company"

(1) Where One Person Company limited by shares or by guarantee enters into a contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the Board of Directors of the company held next after entering into contract:

Provided that nothing in this sub-section shall apply to contracts entered into by the company in the ordinary course of its business.

(2) The company shall inform the Registrar about every contract entered into by the company and recorded in the minutes of the meeting of its Board of Directors under sub-section (1) within a period of fifteen days of the date of approval by the Board of Directors.

What is the rule for Company to contribute to bona fide and charitable funds, etc? What is Prohibitions and restrictions regarding political contributions? Section 181 and 182 of Indian Companies Act 2013

What is the Power of Board and other persons to make contributions to national defence fund, etc? Section 183 of Indian Companies Act 2013

What is Disclosure of interest by director? What is the law regarding Loan to directors, etc? Section 184 and 185 of Indian Companies Act 2013

Loan and investment by company? What is the meaning of Investments of company to be held in its own name? Section 186 and 187 of Indian Companies Act 2013

What is Related party transactions? What is the Register of contracts or arrangements in which directors are interested? Section 188 and 189 of Indian Companies Act 2013

What is Contract of employment with managing or whole-time directors? Section 190 of Indian Companies Act 2013

What is Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares? Section 191 of Indian Companies Act 2013

What is Restriction on non-cash transactions involving directors? What is contract by One Person Company? Section 192 and 193 of Indian Companies Act 2013

What is Prohibition on forward dealings in securities of company by director or key managerial personnel? What is Prohibition on insider trading of securities? Section 194 and 195 of Indian Companies Act 2013

What is Appointment of managing director, whole-time director or manager? Section 196 of Indian Companies Act 2013

What is Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits? Section 197 of Indian Companies Act 2013

What is Calculation of profits? Section 198 of Indian Companies Act 2013

What is Recovery of remuneration in certain cases? What is Central Government or company to fix limit with regard to remuneration? Section 199 and 200 of Indian Companies Act 2013

 

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