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

Application of Chapter VII to OPC and Exemption to Private Company

# Application to One Person Company [Section 122]

## OPC and Meetings — A Special Regime

### General Meeting of OPC

For businesses to be transacted at a general meeting of OPC, it is sufficient if:

1. The resolution is communicated by the member to the company and entered in the minutes book, AND

2. The minutes book is signed and dated by the member — such date is deemed as the date of the meeting.

### Board Meeting of OPC (with only one director)

It is sufficient if:

1. The resolution is entered in the minutes book, AND

2. The minutes book is signed and dated by the director — such date is deemed the date of the meeting.

## Punishment for Default

Company and officer/person in default: Fine extendable up to ₹ 5,000 and further fine up to ₹ 500 per day after the first day during which contravention continues.

## Provisions NOT Applicable to OPC

The following sections are inapplicable to OPC:

SectionsSubject Matter
98 & 100EGM and NCLT-called EGM
101 & 102Notice & Explanatory Statement
103 & 105Quorum & Proxies
104Chairman of meetings
106 to 110Voting Provisions (incl. postal ballot)
111Circulation of Members' Resolution

## Exemption to Private Company

If the AOA of a Private Company (which has not committed default under Sec. 92 & 137) so provides, it is exempted from Sections 101 to 107 and 109.

## Key Memory Hook

"For OPC, a meeting is a fiction — one signature in the minutes book = meeting deemed held. Sec. 98 and 100-111 simply don't apply because they assume more than one person in the room."

Worked example

### Example 1

Example: An OPC has a sole member-cum-director. He needs to pass a resolution for opening a new bank account. How is this done?

Answer: The director enters the resolution in the Board minutes book and signs and dates it. That date is deemed the date of the Board meeting. No physical meeting, no notice, no quorum requirements apply.

⚠️ Common exam mistakes

  • Applying notice/quorum/proxy provisions to OPC — they are categorically excluded by Sec. 122.
  • Forgetting that the Sec. 122 exemption for private companies applies only if it has NOT defaulted on Sec. 92 (annual return) and Sec. 137 (financial statement filing) — and only if the AOA enables it.
  • Confusing the penalty figures — Sec. 122 default attracts ₹ 5,000 + ₹ 500/day, distinct from other minute-related penalties.
Reference: Section 122 — Companies Act, 2013
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