Ratanlal, a member of Rajratna Ltd. has given notice to the company for inspection of the contract of service with Manohar, Managing Director. Advise the company.

The provisions regarding keeping of the copies of the contract of employment with managing director or whole-time director and inspection thereof by members as contained in Section 190 of the Companies Act, 2013 are stated as below. As per Section 190 (1) of the Companies Act, 2013, every company shall keep at its registered office: a) where a contract of service with the managing director or whole-time director in writing a copy of the contract or b) where such contract is not in writing, a written memorandum setting out its terms. As per Section 190 (2) of the Companies Act, 2013, the copies of the contract or the memorandum kept under sub-clause (1) shall be open for inspection by any member of the company without payment of fees. As per Section 190 (3) of the Companies Act, 2013, if any default is made in complying with the provisions of sub-section (1) or sub-section (2), the company shall be liable to a penalty of twenty-five thousand rupees and every office of the company who is in default shall be liable to a penalty of five thousand rupees for each default. As per Section 190(4) of the Companies Act, 2013, the provisions of this section shall not apply to a private company. In view of the above provisions, Mr. Ratanlal, a member of Rajratna Ltd. has right to inspect the copies of the contract of service or memorandum setting out terms of employment of Mr. Manohar Managing Director. If Mr. Ratanlal is not allowed inspection, the company and every officer will be liable to penalty as prescribed in Section 190 (3) of the Companies Act, 2013. The company management will be advised to allow Mr. Ratanlal inspection of the copy of contract of service of Mr. Manhar, Managing Director.