Partners
This query is : Resolved
01 July 2014
Can a Managing Director of a private limited company become partner in a partnership firm ?
01 July 2014
there is no restriction for the same.
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Ankur Garg
(Expert)
03 July 2014
Agree with expert.
There is no restriction prescribed in law for the same. However as per section 184 of companies act, 2013, such managing director would be required to disclose his interest in that partnership firm through submission of form MBP.1 to the board of directors.
Thanks
There is no restriction prescribed in law for the same. However as per section 184 of companies act, 2013, such managing director would be required to disclose his interest in that partnership firm through submission of form MBP.1 to the board of directors.
Thanks
Message likes :
1 times
05 July 2014
Does the requirement of section 184 of companies Act 2013 and 189 of companies Act 2013 need to get registered in registrar of companies ?
09 August 2024
### Requirements of Sections 184 and 189 of the Companies Act, 2013
**Sections 184 and 189 of the Companies Act, 2013** deal with the disclosure of interest and related party transactions in companies. Here’s how they function and the related registration requirements:
#### **1. Section 184: Disclosure of Interest by Directors**
- **Requirement**:
- Under **Section 184** of the Companies Act, 2013, every director of a company must disclose their interest in any company or companies, or bodies corporate, firms, or other association of individuals, in which they hold any position or relationship, including directorships and other significant positions.
- This disclosure must be made at the time of their appointment or whenever there is a change in their interest.
- The disclosure is made in the form of a declaration, which should be recorded in the minutes of the meetings of the Board of Directors.
- **Registration with Registrar of Companies (RoC)**:
- There is no direct requirement for the disclosure to be registered with the RoC. However, these disclosures should be recorded in the company's board meeting minutes and be available for inspection by shareholders and regulators.
#### **2. Section 189: Register of Contracts or Arrangements in which Directors are Interested**
- **Requirement**:
- **Section 189** mandates that a company must maintain a register of contracts or arrangements in which directors are interested. This register must include details of all contracts and arrangements in which a director has an interest and which are required to be disclosed under Section 184.
- The register must be maintained at the registered office of the company and must be kept open for inspection by members and other persons as specified by the Act.
- **Registration with RoC**:
- Like Section 184, there is no requirement to register the register of contracts or arrangements with the RoC. It should be maintained at the company's registered office and made available for inspection as required by the Act.
### **Summary**
- **Section 184**: Requires directors to disclose their interests, which should be recorded in the minutes of board meetings. No direct registration with the RoC is required.
- **Section 189**: Requires companies to maintain a register of contracts or arrangements involving directors. This register must be kept at the registered office and made available for inspection, but it does not need to be registered with the RoC.
### **Additional Notes**
- **Compliance**: It is crucial for companies to ensure compliance with these sections by maintaining proper documentation and records. Non-compliance can lead to penalties and other legal consequences.
- **Inspection**: While not registered with the RoC, these records must be made available for inspection by shareholders and auditors as part of corporate governance practices.
For further details, you can refer to the **Companies Act, 2013**, and the relevant sections for complete compliance guidelines.
**Sections 184 and 189 of the Companies Act, 2013** deal with the disclosure of interest and related party transactions in companies. Here’s how they function and the related registration requirements:
#### **1. Section 184: Disclosure of Interest by Directors**
- **Requirement**:
- Under **Section 184** of the Companies Act, 2013, every director of a company must disclose their interest in any company or companies, or bodies corporate, firms, or other association of individuals, in which they hold any position or relationship, including directorships and other significant positions.
- This disclosure must be made at the time of their appointment or whenever there is a change in their interest.
- The disclosure is made in the form of a declaration, which should be recorded in the minutes of the meetings of the Board of Directors.
- **Registration with Registrar of Companies (RoC)**:
- There is no direct requirement for the disclosure to be registered with the RoC. However, these disclosures should be recorded in the company's board meeting minutes and be available for inspection by shareholders and regulators.
#### **2. Section 189: Register of Contracts or Arrangements in which Directors are Interested**
- **Requirement**:
- **Section 189** mandates that a company must maintain a register of contracts or arrangements in which directors are interested. This register must include details of all contracts and arrangements in which a director has an interest and which are required to be disclosed under Section 184.
- The register must be maintained at the registered office of the company and must be kept open for inspection by members and other persons as specified by the Act.
- **Registration with RoC**:
- Like Section 184, there is no requirement to register the register of contracts or arrangements with the RoC. It should be maintained at the company's registered office and made available for inspection as required by the Act.
### **Summary**
- **Section 184**: Requires directors to disclose their interests, which should be recorded in the minutes of board meetings. No direct registration with the RoC is required.
- **Section 189**: Requires companies to maintain a register of contracts or arrangements involving directors. This register must be kept at the registered office and made available for inspection, but it does not need to be registered with the RoC.
### **Additional Notes**
- **Compliance**: It is crucial for companies to ensure compliance with these sections by maintaining proper documentation and records. Non-compliance can lead to penalties and other legal consequences.
- **Inspection**: While not registered with the RoC, these records must be made available for inspection by shareholders and auditors as part of corporate governance practices.
For further details, you can refer to the **Companies Act, 2013**, and the relevant sections for complete compliance guidelines.
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