Section 189 of companies act 2013 query

This query is : Resolved

Naveen Jain (Querist)
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29 December 2015 Section 189 of the Act says that particulars of contract under section 188 need to be entered in the register.

But Section 188 doesnt apply to transactions which are in ordinary course of business and are at ALP. So does that mean Section 189 would also not apply to those transactions??

Pratik Shah

Pratik Shah (Expert)
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30 December 2015 Yes.. Contracts and Arrangement which are at ALP does not fall under the purview of Section 188. And Hence you do not need to make entry in Register for this.

However, it is also to be noted that Form AOC-2 asks details about the all such contracts which are at ALP.

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