Section 184(1) of the Companies Act, 2013 deals with the disclosure of Director’s interest. Every Director of the Company shall disclose his/her interest in all the Companies or Firms or Body Corporate or any Association of Individuals by giving a notice to the Board of Directors of the Company.
Every Director shall disclose his/her interest
1. At the first Board meeting in which he/she participates as a Director and
2. At the first Board meeting of every financial year or
3. Whenever there is any change in the disclosures already made, then at the first Board meeting held after such change
Disclosure of such interest by the Director shall be made in Form MBP-1 under Rule 9(1) of the Companies (Appointment and Qualification of Director) Rules, 2014
Disclosure of Interest made by the Directors in Form MBP-1 shall be kept at the registered office of the Company in the safe custody of the Company Secretary or any other person authorized by the Board of the company. This shall be preserved for a period of eight years from the end of the financial year to which it relates
If any of the Directors of the company contravenes this provision, he shall be liable to a penalty of one lakh rupees (Rs.1,00,000/-)
As per Section 164(2) Companies Act, 2013 and Rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014, all the Directors of the Company shall intimate to the Board about the Companies in which he is or has been a Director during the last three years disclosing whether he has incurred any disqualification or not under Section 164 Companies Act, 2013 in Form DIR-8.
Form DIR-8 shall be submitted by the Director of the Company to the Board at the time of his appointment, reappointment and also at the first Board Meeting of every financial year.
Disclosure of intimation made by the Directors shall be preserved by the company at its registered office.
Board of Directors of the Company shall take the note of the disclosures made by the Directors in Form MBP-1 and DIR-8 by passing the required resolution at the first meeting of the Board held in every Financial Year.
Author: Krishna Chandak
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