Director u/s 305

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Arun Punyani (Querist)
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23 July 2010 Sir,
Please tell me whether in a private company u/s 305 a additional director is required to make declaration to Board of other body corporates?

Thanks & Regards,
ACS Preeti

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 July 2010 Yes he is required to make declaration.

Detail Sec:--

305. Duty of directors etc. to make disclosure:--

(1) Every director, managing director, manager or secretary of any company, who is appointed to or relinquishes, the office of director, managing director, manager or secretary of any other body corporate, shall, within twenty days of his appointment to, or as the case may be, relinquishment of, such office, disclose to the company aforesaid the particulars relating to the office in the other body corporate which are required to be specified under sub-section (1) of section 303; and if he fails to do so, he shall be punishable with fine which may extend to five thousand rupees.

(2) The provisions of sub-section (1) shall also apply to a person deemed to be a director of the company by virtue of the Explanation to subsection (1) of section 303 when such person is appointed to, or relinquishes, any of the offices in the other body corporate referred to in sub-section (1).

Ankur Garg

Ankur Garg (Expert)
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23 July 2010 Agree with sanjay ji...

As section 305 is applicable to all companies.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 July 2010 305(1)is applicable to additional director's also. The only exception, as per my understanding ,is to subscribers to the memorandum of association who are deemed to be directors by virtue of section 254 of the act.

Arun Punyani

Arun Punyani (Querist)
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28 July 2010 Thanks a lot sir

Regards,
ACS Preeti

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