Disclosure of directors interest

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 In a company ABC Pvt. Ltd. there are two directors Mr. X and Mr. Y. If any of the relative of directors' (suppose Mr. S)is appointed as new Director.

My queries are as follows:

1. While issuing notice to the members of AGM is it mandatory to disclose the same in Explanatory Statement u/s 173 that following directors are interested in appointment of Mr. S as Director.

2. Is that requires disclosure in statutory register maintained u/s 302.

Thanks in advance.

Amol S Joglekar

Amol S Joglekar (Expert)
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23 August 2012 'being interested in' and 'relative' are 2 different things.You need to disclose the fact that the new director is relative of existing director... so and so. Answwers to both the questions are affirmative.

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2012 Sir ,

Can u please explain the term 'being interested in'. it includes only contracts which are stated u/s 297?

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Amol S Joglekar

Amol S Joglekar (Expert)
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24 August 2012 The latest example could be whether Mr. Pranab Mukharji was interested in.... office for profit etc. etc. Another example could be ...say I am director in ABC company. A tender is called for appointing say flower decoration. I bid for the tender say through my firm of floral decoration. Here comes the question of 'being interested in"

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2012 thank you sir