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Filing of Disclosure of Directors Interest

As per the Companies Act, 2013 all Directors have to give disclosure regarding their general notice of interest in other entities as specified below and they have to give this disclosure in form MBP-1 before the first Board meeting of the new financial year. Disclosure of interest should be in company or companies, or bodies corporate or firms, or other association of individuals which should include his shareholding.

In the new form MBP-1, the Directors have to give 

  • list of all their directorships held in Indian and foreign companies, 
  • partnerships or proprietorships held, 
  • member of Association of Persons, 
  • shareholdings in private companies, 
  • shareholdings in public companies if the shareholdings if the director alongwith his relatives two percent or more of the paid up share capital of such public company. 
  • interest or concern in other body corporates.

The definition of “body corporate” as given in section 2(11) of the Companies act, 2013 includes a company incorporated outside India, so the disclosure above shall include list of directorships and shareholdings held outside India also. 

Further under section 117 read with section 179 and Rule 8 of the Companies (Meetings of the Board and its Powers) Rules, 2014, the Board resolution which takes on record the disclosure of directors interest in the first Board meeting is required to be filed with the Registrar of Companies, in form MGT-14 within 30 days of the Board meeting. The form MGT-14 is required to enclose the extracts of the Board resolution. The forms i.e. MBP-1 forms is not required to be enclosed along with the said form MGT-14. This was corroborated recently by ROC, Mumbai which approved three forms which i had filed recently where i had enclosed only the Board resolutions and not the MBP-1 forms. 

Nevertheless it is advisable to name the Directors whose forms i.e. MBP-1 forms have been received and are being taken on record at the said Board meeting. 

The list of relatives is also required to be given as per the new definition of the “relatives” under the new Act.

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