Agreement/service contract for wtd/md

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2015
Kindly clarify :

Sec.190(1) of Companies Act 2013 is telling to keep the service contract of MD or Whole-time Director in the Registered office for inspection of members.

Here, Service contract means only a letter of appointment or particularly an agreement.

As in act its only mentioning service contract not an agreement.

Most of the companies are following agreement but if management is not interested than.

Suggest in this regard.

Pratik Shah

Pratik Shah (Expert)
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15 July 2015 Service contract here means every such document which has terms and conditions of his service. You will also have to keep his Agreement because it contains terms and conditions of his services.
Else, there will be no use of this section for the benefit of members of the company.

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2015 Mr.Pratik, your correct and its a normal course of understanding.

Only the clarification what i needed is, why a letter of appointment cannot be a service contract and why all are taking this as an agreement between company & director only.

In appointment letter also every term & conditions are duly falling, than why a question of agreement arises here

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Pratik Shah

Pratik Shah (Expert)
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15 July 2015 Appointment letter can also be executed between Company and director. There is no restriction on that.

You can have letter of appointment between director and company. It can be considered as Service contract.

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2015
correct and thank you so much