Section 193. Contract by One Person Company
(1) Where a 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 contract shall be in writing and contained in a memorandum or recorded in the minutes of the meeting of the Board at which the contract was considered.
Provided that where a contract is entered into by the company in the ordinary course of business, other than a contract of sale or purchase of goods and services, the requirement of recording the contract in the memorandum or minutes shall not apply.
(2) The company shall inform the Registrar about every contract entered into by the company and recorded in the memorandum or minutes within fifteen days of the date of approval by the Board.
