We updated earlier about the correction in the letter head of the Company in order to comply with the requirement of the Companies Act, 2013. Another thing the company has to be careful about is Disclosure of Director’s interest.
Disclosure of Director’s Interest….
Reason 1: Contravention by a Director may lead to imprisonment extending to 1 year or a fine not less than Rs. 50,000 and extending to Rs. 1,00,000. (This contravention can be compounded only with the approval of the Special Court.).
Reason 2: The Company shall file copy of this Resolution (Disclosure of Interest) with the RoC within 30 days of passing it..
Reason 3: If there is delay in filing the Resolution beyond 270 days, then the Company shall be punishable with fine of minimum of Rs. 5 lacs but which may extend to Rs. 25 lacs and every Officer in Default shall also be penalised with fine of min Rs. 1 lac to Rs. 5 lacs. (The only reprieve is this is a compoundable offence).
Reason 4: The office of a director shall become vacant in case he acts in contravention of the provisions of Section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested (Sec 167)
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Dear all,
Rule 9 of “meeting of board & its power” states that every director shall disclose his concern or intrest in any company by giving notice…my query is director may have personal holdings and interest by way of shares held in their Demat and such interest changes very frequently…how to keep tarck..
so is the interpretation is that director shall disclose his shareholding interest of only those companies in which he is director..
Please clarify
Pursuent to Section 184(1)and Rule 9(1)[Disclosures by a Director of his Interest]- 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. A change in shareholding interest needs to be disclosed if it is more than 2% of the Paid up capital.
1 Whether Form MBP-1 should include demat shares held by the director ?
Sneh, Disclosure of Directors interest (Sec 184) shall include interest by way of his holding in shares, it does not matter whether the holding is in demat or physical.
Dear Sir
Can u provide me the draft board resolution for approval of financial statments and Board report under new companies act 2013.
I shall be very thankful to u.