Register of contracts or arrangements in which directors are interested
1. Every single corporation shall keep one or more registers giving separately the details of all contracts or arrangements to which sub-section (2) of section 184 or section 188 applies, in such way and containing such particulars as may be prescribed and after entering the particulars, such register or registers shall be placed before the next meeting of the Board and should be signed by all the directors present at the meeting.
2. Every director or key managerial personnel shall, within a period of 30 days of his appointment, or renunciation of his office, as the case may be, disclose to the corporation the details specified in sub-section (1) of section 184 relating to his concern or interest in the other associations which are required to be included in the register under that sub-section or such other info relating to himself as may be prescribed.
3. The register should be kept at the registered office of the corporation as well as open for inspection at such office during business hours and extracts may be taken therefrom, and copies thereof as may be required by any member of the corporation shall be furnished by the company to such extent, in such manner, and on payment of such fees as may be prescribed.
4. The register to be kept under this section shall also be produced at the commencement of every AGM of the corporation and shall remain open as well as available during the continuance of the meeting to any person possess the right to attend the meeting.
5. Nothing contained in sub-section (1) shall apply to any contract or arrangement, for the sale, purchase or supply of any goods, materials or services if the value of such goods and materials or the cost of such services does not exceed five lakh rupees in the aggregate in any year; or by a banking company for the collection of bills in the ordinary course of its business.
6. In case any director who fails to conform to the provisions of this section as well as the guidelines made thereunder, such director shall be accountable to a penalty of Rs. 25000/-
DISCLAIMER:
The article is based on the relevant provisions and as per the information existing at the time of the preparation. In no event I shall be liable for any direct and indirect result from this article. This is only a knowledge sharing initiative.
The author can be reached at vinayak.vharu@gmail.com
References
Companies Act 2013
CAclubindia
