Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Applicability of Meetings Chapter to OPC - Section 122

# Application to OPC (Sec 122)

## Provisions Not Applicable to OPC

The following sections DO NOT apply to a One Person Company:

  • Sec 98 (Power of Tribunal to call meetings)
  • Sec 100 to Sec 111 (covering EGM, notice, explanatory statement, quorum, chairman, proxies, voting, special resolution, postal ballot, etc.)

## Ordinary Business at AGM

The ordinary businesses required at an AGM (under Sec 102(2)(a)) must still be transacted in an OPC — but in the manner specified in Sub-section (3).

## How OPC Transacts Business

### Member Resolutions

For any business requiring an ordinary or special resolution:

1. The resolution must be communicated by the member to the company.

2. It must be entered in the minutes book.

3. Signed and dated by the member.

4. The date entered is deemed the date of the meeting for all purposes.

### Board Resolutions in One-Director OPC

If OPC has only one director:

  • Board resolutions are entered in the minutes book.
  • Signed and dated by the director.
  • Date entered is deemed the date of Board meeting.

## Penalty for Non-Compliance

DefaultPenalty
Company and every officer / person in defaultFine up to ₹5,000
Continuing contraventionFurther fine of ₹500/day

## Why This Exemption?

OPC has only one member (and may have only one director), so the entire architecture of meetings (notice, quorum, voting, proxies) is meaningless. The Act creates a deemed meeting mechanism through the minutes book.

Worked example

### Example 1

Example 1: An OPC has one director who is also the sole member. He wants to approve appointment of an auditor. How does he validly do so?

Answer: He enters the resolution in the minutes book, signs and dates it. That date is deemed the date of the AGM under Sec 122(3). No formal notice, quorum, or meeting is required.

### Example 2

Example 2: Can the Tribunal call a meeting of members of an OPC under Sec 98?

Answer: No. Sec 122(1) expressly excludes Sec 98 from applicability to OPC. The Tribunal has no power to call meetings of OPC members.

⚠️ Common exam mistakes

  • Believing OPC need not hold an AGM at all — OPC is exempt from Sec 96, but the ordinary business of an AGM must still be transacted through the deemed-meeting mechanism.
  • Confusing the OPC penalty (₹5,000 + ₹500/day) with other default penalties.
  • Forgetting that the one-director shortcut (deemed Board meeting) is available only when the OPC has a single director — multi-director OPCs follow normal Board meeting rules.
  • Listing wrong sections as inapplicable — it is 98 and 100-111 (not, e.g., Sec 96 or 118).
Bare-Act text Section 122 · Companies Act, 2013 · click to expand
Sec 122(1): The provisions of section 98 and sections 100 to 111 (both inclusive) shall not apply to a One Person Company. Sec 122(3): For the purposes of section 114, any business which is required to be transacted at an annual general meeting or other general meeting of a company by means of an ordinary or special resolution, it shall be sufficient if, in case of One Person Company, the resolution is communicated by the member to the company and entered in the minutes-book required to be maintained under section 118 and signed and dated by the member and such date shall be deemed to be the date of the meeting for all the purposes under this Act.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic