Section 184

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 What is the Procedure Under Section 184 of the Companies Act, 2013.

Ankur Garg

Ankur Garg (Expert)
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17 June 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 a matter of discussion that whether 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.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Thank you sir,
I have one more query

I am about to file Form MBP-1 (Notice of interested director) for a company kindly tell me whether a director who is only a shareholder in other company has to give disclosure of his shareholding in form MBP-1 and is there any limit beyond which he has to disclose his shareholdin

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Ankur Garg

Ankur Garg (Expert)
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18 June 2014 Yes.

Person holding even 1 share in other company is required to mention the name of that company in his form MBP.1

That 1 share also create his interest in that company.

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Ankur Garg

Ankur Garg (Expert)
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18 June 2014 Please find below a very useful link to study FAQs on section 184. Download and go through the Article available at the link below:

http://india-financing.com/images/Articles/FAQs_on_Section_184.pdf

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2014 Thank u very much sir

Ankur Garg

Ankur Garg (Expert)
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18 June 2014 You are welcome and keep sharing your doubts with us.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2014 Hello Sir,

I want to Know about Form DPT-4 and Procedure of Filing the Same and Notice, Resolution and Explanatory Statement under section 180(1)(a) and (1)(c) of the companies Act 2013.

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