Disclosure of interest by director

This query is : Open

CA Sanjana arora (Querist)
Follow

22 June 2014 hiiii
under companies act disclosure of interest a which type of interest is covered a directorship in other company or shareholding in other company...

Hitendra Jain

Hitendra Jain (Expert)
Follow

23 June 2014 Section 184(1) reads as below:
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.
In Form MBP-1 fourth column is given separately for the details of shareholding. Hence shareholding is compulsory requirement with other interest.
Interest should be an “interest” which conflicting with duty as director and not limited to financial interest only. Hence apart from Directorship, Remuneration, Place of profit and interest by himself or through relatives also taken in to account while entering information in third column of the said form MBP-1 to ensure strictly adherence of Section 184 and 188.