Undisclosed principal obligations: agents must record and disclose contracts, noncompliance makes contracts voidable and attracts penalty. Section 416 requires an agent of a public company or of a private company that is a public company subsidiary who contracts where the company is an undisclosed principal to make a written memorandum of the contract terms and counterparty, deliver it to the company, send copies to each director, file it in the company office, and have it laid before the Board at its next meeting; noncompliance renders the contract voidable at the company's option and exposes the agent and defaulting officers to a statutory penalty.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Undisclosed principal obligations: agents must record and disclose contracts, noncompliance makes contracts voidable and attracts penalty.
Section 416 requires an agent of a public company or of a private company that is a public company subsidiary who contracts where the company is an undisclosed principal to make a written memorandum of the contract terms and counterparty, deliver it to the company, send copies to each director, file it in the company office, and have it laid before the Board at its next meeting; noncompliance renders the contract voidable at the company's option and exposes the agent and defaulting officers to a statutory penalty.
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