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Section 2(49) and 184(2) of companies act

Anu K S (Cleared CA Final) (195 Points)

10 February 2018

Definition as per section 2(49) is more elaborate than 184(2). My doubt is whether a director is required to disclose his interest if he is interested as per 2(49) but not so as per 184(2)? Please explain!!

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CS Smreti (cs) (641 Points)
Replied 11 February 2018

There are two types of disclosure first is in the form if MBP 1 which is to be given at the first meeting of every FY and thereafter if there is any change.
Second disclosure which is referred in 184(2) is to be made at the time of entering into contract or proposed to enter into. The disclosure to be made as per section 184(2). The reason being thus section no where uses the term interested director. This term is only used in section 174 which also requires using of definition as per section 184(2)