Section 122 of CA 2013 : Section 122: Applicability Of This Chapter To One Person Company

Explanation using Example

Imagine that Rahul is the sole owner and director of "Rahul Tech Innovations OPC Pvt. Ltd.," a One Person Company (OPC). Under the Companies Act, 2013, Rahul wants to declare dividends for the year and needs to pass an ordinary resolution to do so. Normally, this would require calling an annual general meeting (AGM) with all the usual formalities, such as sending out notices to members and directors.

However, Section 122 of the Companies Act, 2013, simplifies this process for OPCs. Instead of holding an AGM, Rahul can simply write down the resolution to declare dividends, sign and date it, and then enter it into the company's minute book. This signed resolution will be equivalent to having passed it at an AGM, and the date Rahul signed the resolution will be considered the date of the meeting for all legal purposes.