Form 24 aa disclosure ??? pls help

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2013 Dear All

Pls let me know whether this disclosure is required to be obtained from directors annually or what? is this is mandatory for private companies also?

the language of section 299(3)(b) is any such general notice shall expire at the end of fy in which it is given, but may be renewed for a period of one fy at a time, by a fresh notice given in the last mth of the fy in which it would otherwise xpire

so if a general notice is given in the mth of march for a particular year, then whether it will serve the purpose of that year or it will suffice for next year as well and in next fy no need for this?

Ajay Mishra

Ajay Mishra (Expert)
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01 December 2013 Hi

Section 299 is applicable to all companies. Therefore, all directors are required to give the notice of disclosure, in writing. It is equally applicable to the alternate director including the directors appointed by the financial institutions and the Central Government under section 408 of the Act.

If director give general notice in the month of March then it will be for the next financial year starting from April to March .

Ajay Mishra

Ajay Mishra (Expert)
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01 December 2013 Method of disclosure by a general notice

Section 299(3) deals with the mode of disclosure. A general notice given to the Board by a director, to the effect that he is a director or a member of a specified body corporate or is a member of a specified firm and is to be regarded as concerned or interested in any contract or arrangement which may, after the date of the notice, be entered into with that body corporate or firm, shall be deemed to be a sufficient disclosure of concern or interest in relation to any contract or arrangement so made. Following are the important aspects in this regard:—
(i) Contents of general disclosure.—The notice shall specify the following details which he furnishes to the Board of directors of the concerned company:—
(a) He is a director of a specified body corporate(s).
(b) He is a member of a specified body corporate(s).
(c) He is a member of a specified firm. This also includes member of HUF, sole proprietary or charitable concern.
(d) He has indirect interest as he is interested through his relatives in specified body corporate(s) or firm.
(ii) Validity of general notice.—Any such general notice shall expire at the end of the financial year in which it is given, but may be renewed for further period of one financial year at a time, by a fresh notice given in the last month of the financial year in which it would otherwise expire. [Section 299(3)(b)]
(iii) Giving or reading of general notice at Board meeting.—Section 299(3)(c) provides that no general notice as described under section 299(3)(a), and no renewal thereof, shall be of effect unless either it is given at a meeting of the Board, or the director concerned takes reasonable steps to secure that it is brought upon and read at the first meeting of the Board after it is given.
(iv) Include details of relatives' interest.—It is the responsibility of a director to disclose the nature of interest of his relatives, if any.
(v) Form for disclosure.—It should be made in the prescribed Form 24AA.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2013 ok thnks very much sir.. means general notice is to be given 2 times in a fy?? one at any time before march and the second in the month of march to renew it for next Fy??