193. 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.