Disclosures under section 299 (Corporate Law)

This query is : Resolved

Gayathri

( Author )
07 April 2011

Members,

In a X pvt ltd company, there are 3 directors of which 1 director, Mr.A is permanently residing in foreign country. In such cases, it has been difficult to obtain the regular disclosures as per section 299 of the Companies Act. Whether can the disclosure mentioned above be signed by any other person by giving a power of attorney??

Is a power valid for such purposes? Else what can be done. Kindly clarify.

mitesh

( Expert )
08 April 2011

No it is not valid. Director disclosure need to be signed by director himself.

What you can do is send Form 24AA to NRI director by mail, request him to sign & send it back to you.

Gayathri

( Author )
08 April 2011

Mitesh,
Can u give any case laws or instances supporting your view?

mitesh

( Expert )
08 April 2011

I don't have any case law or instances in support of my view.

Section 299 recognizes and codifies the principle of fiduciary duty of a director to the company and cast upon him the statutory obligation to disclose the nature of his interest to his co -directors. it is not mere a formality.

if is difficult to obtain regular (Specific ) disclosure, you can take general disclosure at the beginning of the each financial year.