Disclosure under sec 184 in Form MBP 1
CS. JAYANT SUTHAR
Dear All,
Pursuant to the sec 184 (1) every director shall disclose his concern or interest in any company, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed.
Sec 184 (2) Every director of a company, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into with a body corporate in which such director or association with any other director, holds more than two per cent. shareholding of that body corporate, or is a promoter, manager, Chief Executive Officer of that body corporate;
12.Chapter XII_Companies (Meetings of Board and its Powers) Rules, 2014
Rule 9. Disclosures by a director of his interest: (1) 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 MBP 1.
Query : Merely common “Directorship” not amount as concerned or interested until holds more than two per cent. Shareholding in other Company by the Director?.
Based on above, a Director having only Directorship in other companies (not hold any shares) need not to be give a notice in writing in Form MBP 1.
Provided further
Rule 16. Register of contracts or arrangements in which directors are interested.- (1) Every company shall maintain one or more registers in Form MBP 4, and shall enter therein the particulars of-
(a) company or companies or bodies corporate, firms or other association of individuals, in which any director has any concern or interest, as mentioned under sub-section (1) of section 184:
Provided that the particulars of the company or companies or bodies corporate in which a director himself together with any other director holds two percent. or less of the paid-up share capital would not be required to be entered in the register;
(b) contracts or arrangements with a body corporate or firm or other entity as mentioned under sub-section (2) of section 184, in which any director is, directly or indirectly, concerned or interested;