Disclosure of interest by directors

This query is : Resolved

Raj Raj (Querist)
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29 March 2011 Whether disclosure given by a director under Section 305 of the Companies Act, 1956 has to be placed before the Board then and there (or) a general notice given by a director under Section 299 can be placed before the Board at the last meeting of the financial year.

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Raj Raj

Raj Raj (Querist)
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30 September 2011 Whether disclosure given by a director under Section 305 of the Companies Act, 1956 has to be placed before the Board then and there (or) a general notice given by a director under Section 299 can be placed before the Board at the last meeting of the financial year.

Expert views are solicited

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Expert)
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16 July 2012 General Notice given by a director expires at the end of the fianancial year. It is to be given at the last month of the previous financial year and it operates for the succeeeding financial year.It is to be given afresh year after year, so that new directors coming into the board may be made aware of the interest of that particular director.Whenever there is a change in the above disclosure due to fresh appointment or relinquisement of his office,he has to make disclosure U/s 305 of the Companies Act,to the Company within 21 days of the said appointment or relinquisement,as the case me.If he fails to do so, he shall be punishable with fine which may extend to Rs.5,000/-.

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