Disclosure u/s 299- co.s act, 1956

As per section 299(1) every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement, or proposed contract or arrangement, entered into or to be entered into, by or on behalf of the company, shall disclose the nature of his concern or interest at a meeting of the Board of directors.

There is also provision of general notice of interest u/s 299(3). If a director has given this general notice he/she would not be required to disclose interest at each contract or arrangement with the corporate body or firm, mentioned in said general notice.

So it is advisable to give general notice in the board meeting about that foreign company.

Miss Angel,

Your second question is not clear. But from now onwards (compulsorily)  the Director has to disclose the interest in all Companies including Overseas in Form 24 - AA, Section 299.

Disclosure under section 299(3) via general notice is an optional one. It is basically to avoid disclosure at each and every transaction.

However if your company enters into any contract with that foreign co., disclosure u/s 299 will be must.

yeah , Required

In various Company law cases it has been laid down that the main purpose of this S.299 and its wide sweeping powers is to assuare fairness in dealing between directors and their companies and not to prohibite the ordinary right to contract.
The directors stand in a position of trustees, and the general rule provides that no one who has a duty to perform shall place himself in a situation in which his interest conflicts with his duty and he must not make profit by the trust.[Ramakrishna Rao v.Bangalore Race Club, Ramaswami Iyer v. Madras Times Printing, etc].