Where there is only one director on the Board of Director of a One person Company, any business which is required to be transacted at the meeting of the Board of Directors of a company, it shall be sufficient if, in case of such One Person Company, the resolution by such director is entered in the minutes book required to be maintained under section 118 and signed and dated by such director and such date shall be deemed to be the date of the meeting of the Board of Directors for all the purposes.
Drawbacks:
a. No minor can become Member/Nominee in OPC.
b. OPC can not carry on charitable obejects as its main objects.
c. OPC's are not allowed to carry on NBFC activities including investment in securities in body corporate.
d. A holding or Subsidiary Company cannot form OPC
e. OPC's can not be converted into any kind of company unless 2 years have been expired from the date incorporation or threshhold limit have been exceeded i.e. Paid up share capital exceeded Rs.50 Lakhs or Annual turnover exceeded Rs.2 Crore.
