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Disclosure of interest by director U/s 184 of Companies Act, 2013

Online Query (CA Final Student) (120 Points)

23 August 2019

Whether under section 184 of companies Act, 2013 disclosure of interest (in contact or arrangment) in beginning of every FY is mandatory if interest is less than 2%.

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3 Replies

Chirag (Professional) (1979 Points)
Replied 24 August 2019

No, It's not required, If interest is lesser than 2% of paid up capital, But note that, Once the interest is disclosed, any changes to be mandatorily disclosed in the board meeting held thereafter..

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CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 15 February 2020

Better to give disclosure of interest to avoid any problem in future and for better compliances

You can have resolution for the same at www.corporatedrafting.com by following link at https://corporatedrafting.com/product/interest-in-other-entities-3/

Jatin Bajaj (CS) (2930 Points)
Replied 17 February 2020

For purpose of section 184(2) of the Companies Act 2013, every Director who is interested in any contract or arrangement or proposed contract or arrangement in body corporate in which such director holds more than 2 percent of the total shareholding of the body corporate, then such director shall disclose his nature of interest in which contract or arrangement is discussed but shall not participate in the meeting.

But if the Director is holding less than 2 percent of the amount of the paid up share capital, there is no need to give disclosure in form MBP 1