28 May 2014
According to Sec 184(1)Every director shall at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting held after such change, disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed.
Query 1: If Mr. X is a director in Company ABC and he hold shares in 50 listed companies and other companies, then Is he required to make disclosure in MBP-1?
Query 2: Mr. P son of Mr. X holds 15% shares in PQR (Not relation with XYZ) and some small shareholding in other companies, such interest shall also include under MBP-1?
The word "any Company" used u/s 184(1) has any interpretation?
28 May 2014
Reply to query 1: yes Reply to query 2: My view is that indirect disclosure need to be given in general disclosure u/s 184(1). However, in this case when Mr. P or company PQR enters into any contract with company XYZ, disclosure will be necessary and Mr. X will not participate at such meeting. Section 184(1) is w.r.t "his concern or interest in any company", means only direct interest of director concerned.
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