Form mbp-1

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2014 DEAR ALL,
I HAVE GENERAL QUERRIES REGARDING THE FORM MBP-1:
WHAT IS THE LAST DATE FOR SUBMITTING THIS FORM
WHETHER I HAVE TO FILE THIS FORM WITH ROC
IF YES THAN WHAT ARE THE OTHER DOCUMENTS THAT I NEED TO FILE WITH THIS FORM.
PLEASE REPLY AND THANKS IN ADVANCE.

Ankur Garg

Ankur Garg (Expert)
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22 July 2014 First read the new law regarding disclosure of Interest by Director. For taking note of disclosure of Interest by Director Board meeting should compulsorily be held After April 01, 2014 as new form MBP.1 was introduced in April 01, 2014.

Disclosure of Interest by Directors under CA, 2013

As per section 184(1) of Companies Act, Every director shall:

(i.) At the first meeting of the Board in which he participates as a director; and thereafter
(ii.) At the first meeting of the Board in every financial year or
(iii.) 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.

Form MBP.1
As per section 184(1) read with rule 9(1) of Companies (Meetings of Board and its Powers) Rules, 2014, Every director shall disclose his concern or interest in any company or companies or bodies corporate (including shareholding interest), firms or other association of individuals, by giving a notice in writing in Form No. MBP 1.

Requirement of filing form MGT.14 for disclosure of interest by Director

As per Section 117(1), certain resolutions and agreements as required by section 117(3) are required to be submitted with ROC through filing form MGT.14. Section 117(3) also refers matter given in section 179(3) are also required to be reported via MGT.14.

As per section 179(3)(k) read with rule 8(5) of Companies (Meetings of Board and its Powers) Rules, 2014, taking note of the disclosure of director’s interest and shareholding shall be done by the Board only by means of resolutions passed at meetings of the Board. Hence it is duty of the company to pass board resolution to take note of disclosure of interest by Director and file a copy of that board resolution in MGT.14. within 30 days of passing board resolution.

Now it is almost established that form MBP.1 regarding disclosure of director’s interest is also required to be attached through form MGT.14 along with copy of resolution passed u/s 184(1). As per my opinion there is no harm in attaching form MBP.1 with MGT.14 along with copy of board resolution though there is no compulsion as far as language of form MGT.14 is concerned.

Thanks

Ankur Garg

Ankur Garg (Expert)
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22 July 2014 1. What should be the date of new form MBP.1

Form MBP.1 was introduced by MCA in April 01, 2014. Directors should disclose their interest through filing of form MBP.1. So ideally the date of form MBP.1 may be around April 01 to April 07.

2. Board Meeting for taking note of form MBP.1

Now the question is what should be the date of board meeting for taking note of form MBP.1. As per law form MBP.1 for disclosure of interest by directors should be taken note of in the first board meeting for the financial year by passing a board resolution for the same.

So in case first board meeting for the financial year is held on April 05, then date of form MBP.1 may be April 05 or before April 05. File form MGT.14 within 30 days of April 05.

In case first board meeting for the financial year is held on June 22, then date of form MBP.1 may be around April 01 to April 07. File form MGT.14 within 30 days of June 22.

In any case date of form MBP.1 should be around April 01 to April 07.

3. What is to be attached with form MGT.14

There are 2 documents which should be attached with form MGT.14:

a. Board resolution passed under section 184 for taking note of disclosure of interest by Directors.
b. Form MBP.1 given by the Directors

Please revert if there is any doubt.

Thanks

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 thanks sir for ur reply