SkDash (CS (Member) CWA (Final)) (909 Points)
29 April 2011Lets say Mr x is a director in a pvt co and in 2 pub co.
1. whether the said director need to submit declaration u/s 274(1)(g) to a the Pvt Co in which he is a director ?
2. In the form DD-A, shall he required to mention that he is a director in the pvt co ?
As per me, both the answer is No.
nidhigoel89
(Company Secretary )
(594 Points)
Replied 06 May 2011
Hello,
As Sec 274 (1) (g), specificially excludes Pvt. co. bt on the detailed study, it implies that this sec is more centerlized on indiviuals capcity of Directors. And as we can also verify, that in Auditor report they always mention a point(irrespective of Public or Pvt), that declration received by Director u/s 274 (1) (g).
So, my conclusion is declration from director is also required for Pvt. Co.
Thanks
Nidhi
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 06 May 2011
Under Companies Act, Disclosure under Section 274(1)(g) not need to be given to Private Companies.
Howwever, to comply CARO this disclosure is required to be taken in Private Companies as well.
nidhigoel89
(Company Secretary )
(594 Points)
Replied 06 May 2011
Sir,
I think that point is not covered under CARO. Its one of the point given in Auditor report.
Nidhi
Jyotika
(study study n study)
(147 Points)
Replied 07 May 2011
Dear All,
Section 274(1)(g) is applicable to public as well as private company there is no exemption for pvt company. 274(3) states that pvt companies may provide additional ground for disqualification in their articles.
regards'
csjyotika
CAclubindia
