Laws and Bare Acts of India at MyNation.net

MyNation Foundation Online Law Library

Section 416 – The Companies Act,1956

The Companies Act, 1956

416. Contracts by agents of company in which company is undisclosed principal..

(1) Every person, being the 1[***] manager or other agent of a public company or of a private company which is a subsidiary of a public company, who enters into a contract for or on behalf of the company in which contract the company is an undisclosed principal shall, at the time of entering into the contract, make a memorandum in writing of the terms of the contract, and specify therein the person with whom it is entered into.

(2) Every such person who enters into a contract as aforesaid shall forthwith deliver the memorandum to the company and send copies thereof to each of the directors; and such memorandum shall be filed in the office of the company and laid before the Board of directors at its next meeting.

(3) If default is made in complying with the requirements of this section,

(a)the contract shall, at the option of the company, be voidable as against the company; and

(b)the person who enters into the contract, or every officer of the company who is in default, as the case may be, shall be punishable with fine which may extend to 2[two thousand rupees].

——————————

1. The words “managing agent, secretaries and treasurers,” omitted by Act 53 of 2000, sec. 184 (w.e.f. 13-12-2000).

2. Subs. by Act 53 of 2000, sec. 184, for “two hundred rupees” (w.e.f. 13-12-2000).

Previous | Next

The Companies Act, 1956

Indian Laws – Bare Acts

MyNation

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2024 Laws and Bare Acts of India at MyNation.net
×

Free Legal Help, Just WhatsApp Away

MyNation HELP line

We are Not Lawyers, but No Lawyer will give you Advice like We do

Please read Group Rules – CLICK HERE, If You agree then Please Register CLICK HERE and after registration  JOIN WELCOME GROUP HERE

We handle Women Centric biased laws like False Section 498A IPC, Domestic Violence(DV ACT), Divorce, Maintenance, Alimony, Child Custody, HMA 24, 125 CrPc, 307, 312, 313, 323, 354, 376, 377, 406, 420, 497, 506, 509; TEP, RTI and many more…

MyNation FoundationMyNation FoundationMyNation Foundation