Section 184
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 June 2014
What is the Procedure Under Section 184 of the Companies Act, 2013.
17 June 2014
Disclosure of Interest by Directors under CA, 2013
As per section 184(1) of Companies Act, Every director shall:
(i.) At the first meeting of the Board in which he participates as a director; and thereafter
(ii.) At the first meeting of the Board in every financial year or
(iii.) Whenever there is any change in the disclosures already made, then at the first Board meeting held after such change,
disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed.
Form MBP.1
As per section 184(1) read with rule 9(1) of Companies (Meetings of Board and its Powers) Rules, 2014, Every director shall disclose his concern or interest in any company or companies or bodies corporate (including shareholding interest), firms or other association of individuals, by giving a notice in writing in Form No. MBP 1.
Requirement of filing form MGT.14 for disclosure of interest by Director
As per Section 117(1), certain resolutions and agreements as required by section 117(3) are required to be submitted with ROC through filing form MGT.14. Section 117(3) also refers matter given in section 179(3) are also required to be reported via MGT.14.
As per section 179(3)(k) read with rule 8(5) of Companies (Meetings of Board and its Powers) Rules, 2014, taking note of the disclosure of director’s interest and shareholding shall be done by the Board only by means of resolutions passed at meetings of the Board. Hence it is duty of the company to pass board resolution to take note of disclosure of interest by Director and file a copy of that board resolution in MGT.14. within 30 days of passing board resolution.
Now it is a matter of discussion that whether form MBP.1 regarding disclosure of director’s interest is also required to be attached through form MGT.14 along with copy of resolution passed u/s 184(1). As per my opinion there is no harm in attaching form MBP.1 with MGT.14 along with copy of board resolution though there is no compulsion as far as language of form MGT.14 is concerned.
Thanks
As per section 184(1) of Companies Act, Every director shall:
(i.) At the first meeting of the Board in which he participates as a director; and thereafter
(ii.) At the first meeting of the Board in every financial year or
(iii.) Whenever there is any change in the disclosures already made, then at the first Board meeting held after such change,
disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed.
Form MBP.1
As per section 184(1) read with rule 9(1) of Companies (Meetings of Board and its Powers) Rules, 2014, Every director shall disclose his concern or interest in any company or companies or bodies corporate (including shareholding interest), firms or other association of individuals, by giving a notice in writing in Form No. MBP 1.
Requirement of filing form MGT.14 for disclosure of interest by Director
As per Section 117(1), certain resolutions and agreements as required by section 117(3) are required to be submitted with ROC through filing form MGT.14. Section 117(3) also refers matter given in section 179(3) are also required to be reported via MGT.14.
As per section 179(3)(k) read with rule 8(5) of Companies (Meetings of Board and its Powers) Rules, 2014, taking note of the disclosure of director’s interest and shareholding shall be done by the Board only by means of resolutions passed at meetings of the Board. Hence it is duty of the company to pass board resolution to take note of disclosure of interest by Director and file a copy of that board resolution in MGT.14. within 30 days of passing board resolution.
Now it is a matter of discussion that whether form MBP.1 regarding disclosure of director’s interest is also required to be attached through form MGT.14 along with copy of resolution passed u/s 184(1). As per my opinion there is no harm in attaching form MBP.1 with MGT.14 along with copy of board resolution though there is no compulsion as far as language of form MGT.14 is concerned.
Thanks
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 June 2014
Thank you sir,
I have one more query
I am about to file Form MBP-1 (Notice of interested director) for a company kindly tell me whether a director who is only a shareholder in other company has to give disclosure of his shareholding in form MBP-1 and is there any limit beyond which he has to disclose his shareholdin
I have one more query
I am about to file Form MBP-1 (Notice of interested director) for a company kindly tell me whether a director who is only a shareholder in other company has to give disclosure of his shareholding in form MBP-1 and is there any limit beyond which he has to disclose his shareholdin
18 June 2014
Yes.
Person holding even 1 share in other company is required to mention the name of that company in his form MBP.1
That 1 share also create his interest in that company.
Thanks
Person holding even 1 share in other company is required to mention the name of that company in his form MBP.1
That 1 share also create his interest in that company.
Thanks
18 June 2014
Please find below a very useful link to study FAQs on section 184. Download and go through the Article available at the link below:
http://india-financing.com/images/Articles/FAQs_on_Section_184.pdf
Thanks
http://india-financing.com/images/Articles/FAQs_on_Section_184.pdf
Thanks
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2014
Thank u very much sir
18 June 2014
You are welcome and keep sharing your doubts with us.
Thanks
Thanks
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2014
Hello Sir,
I want to Know about Form DPT-4 and Procedure of Filing the Same and Notice, Resolution and Explanatory Statement under section 180(1)(a) and (1)(c) of the companies Act 2013.
I want to Know about Form DPT-4 and Procedure of Filing the Same and Notice, Resolution and Explanatory Statement under section 180(1)(a) and (1)(c) of the companies Act 2013.
23 July 2025
Form DPT-4: Return of Deposit Under the Companies Act, 2013
Form DPT-4 is a return of deposits filed by a company to report the outstanding deposits with the Registrar of Companies (ROC) under the Companies Act, 2013. This form is required to be filed by the company to comply with the provisions of the Act and the rules related to the acceptance of deposits.
**1. Purpose of Form DPT-4:
Form DPT-4 is filed to report:
The outstanding deposits held by the company.
Any repayment of deposits made by the company.
The period of deposit and the interest payable on such deposits.
Particulars of the depositors, such as the name, address, amount of deposit, and whether the deposit is secured or unsecured.
This filing is part of the company's compliance requirements to ensure that all deposits made by the company are properly reported and that the company complies with the regulatory framework governing deposits under the Companies Act, 2013.
2. Who Should File Form DPT-4?
The following companies are required to file Form DPT-4:
Companies that have accepted deposits from public or members and are required to maintain records regarding those deposits.
Companies that have outstanding deposits which they have not repaid.
Companies that are required to report repayments of deposits as well.
**3. Procedure for Filing Form DPT-4:
Here is a step-by-step procedure to file Form DPT-4:
Step 1: Preparation of Required Documents:
Before filing, ensure the following documents are ready:
Details of outstanding deposits: Name and address of depositors, amount of deposit, terms and conditions of deposit, and interest to be paid.
Deposits accepted from members and public: Amount outstanding and the status of such deposits.
Repayment of deposits: Amount repaid, date of repayment, and other relevant details.
Step 2: Login to the MCA Portal:
Go to the MCA website (www.mca.gov.in) and log in using your MCA account credentials.
Step 3: Select the Form DPT-4:
From the dashboard, go to "MCA Services" → "View Public Documents" or "File Forms".
Search for Form DPT-4 and select it.
Step 4: Fill in the Form:
Fill in the details in Form DPT-4, which includes:
Company Details: Name, CIN, registered office address, etc.
Outstanding Deposit Details: Information on outstanding deposits and their terms.
Repayment Information: If applicable, details about the repayments made to depositors.
Step 5: Verification:
After filling in all the details, verify the information carefully.
Step 6: Digital Signature:
Once the form is filled, digitally sign the form using the Digital Signature Certificate (DSC) of the authorized signatory (Director/CS).
Step 7: Payment of Fees:
Pay the filing fees as prescribed by the Ministry of Corporate Affairs for filing Form DPT-4. The fees can be paid online through net banking.
Step 8: Submit the Form:
After payment, submit the form to the ROC. After submission, you will receive an acknowledgment, and the form will be processed by the MCA.
Section 180(1)(a) and (1)(c) of the Companies Act, 2013 - Notice, Resolution, and Explanatory Statement
Section 180(1) of the Companies Act, 2013 deals with the powers of the board of directors of a company and the restrictions on such powers. This section lays down the limit beyond which the board cannot act without the approval of the shareholders through a special resolution.
1. Section 180(1)(a): Power to Sell, Lease, or Otherwise Dispose of the Whole or Substantially the Whole of the Undertaking
Section 180(1)(a) specifies that the Board of Directors cannot, without the approval of the shareholders by special resolution, sell, lease, or otherwise dispose of the whole or substantially the whole of the company’s undertaking.
If the company intends to dispose of a significant portion of its assets (substantial part of the business), the board must obtain the approval of shareholders through a special resolution passed in a general meeting.
2. Section 180(1)(c): Power to Borrow Money Beyond the Aggregate of Paid-Up Capital and Free Reserves
Section 180(1)(c) mandates that the board of directors cannot borrow money exceeding the company’s paid-up capital and free reserves without the prior approval of shareholders by passing a special resolution.
This provision ensures that the company does not take excessive borrowings that may jeopardize the interests of the shareholders and creditors.
3. Procedure for Passing Special Resolution Under Sections 180(1)(a) and 180(1)(c)
Notice to Shareholders
The company must send a notice to its shareholders at least 21 days before the date of the general meeting. The notice should include:
A statement of the proposed resolution.
Details of the resolution, including the reasons for the sale/lease of assets (under Section 180(1)(a)) or the proposed borrowing (under Section 180(1)(c)).
A clear mention that approval of the shareholders by special resolution is required.
Special Resolution
A special resolution is one that is passed by a majority of not less than three-fourths of the members voting at the meeting.
The resolution will specifically approve:
Sale/lease or disposal of undertaking (Section 180(1)(a)).
Borrowing money exceeding the limits prescribed under the Act (Section 180(1)(c)).
Explanatory Statement
An explanatory statement should accompany the notice. It must:
Explain the purpose and need for the resolution.
Provide details of the transaction (sale, lease, borrowing).
Disclose any material interests of directors or their relatives in the resolution.
This explanatory statement is required as per Section 102 of the Companies Act, 2013 and ensures transparency regarding the reasons and implications of the proposed resolution.
4. Filing the Resolution with the Registrar
After passing the special resolution, the company must file the resolution with the Registrar of Companies (ROC) in Form MGT-14 within 30 days from the date of passing the resolution.
This form should include a copy of the special resolution and the explanatory statement.
Summary of Key Steps in Filing and Approval:
Prepare the notice for the shareholders with full details and an explanatory statement.
Pass a special resolution in the general meeting by the required majority (3/4th vote).
File Form MGT-14 with the ROC within 30 days of the resolution being passed.
For Form DPT-4, file online with the details of outstanding deposits or repayments.
Form DPT-4 is a return of deposits filed by a company to report the outstanding deposits with the Registrar of Companies (ROC) under the Companies Act, 2013. This form is required to be filed by the company to comply with the provisions of the Act and the rules related to the acceptance of deposits.
**1. Purpose of Form DPT-4:
Form DPT-4 is filed to report:
The outstanding deposits held by the company.
Any repayment of deposits made by the company.
The period of deposit and the interest payable on such deposits.
Particulars of the depositors, such as the name, address, amount of deposit, and whether the deposit is secured or unsecured.
This filing is part of the company's compliance requirements to ensure that all deposits made by the company are properly reported and that the company complies with the regulatory framework governing deposits under the Companies Act, 2013.
2. Who Should File Form DPT-4?
The following companies are required to file Form DPT-4:
Companies that have accepted deposits from public or members and are required to maintain records regarding those deposits.
Companies that have outstanding deposits which they have not repaid.
Companies that are required to report repayments of deposits as well.
**3. Procedure for Filing Form DPT-4:
Here is a step-by-step procedure to file Form DPT-4:
Step 1: Preparation of Required Documents:
Before filing, ensure the following documents are ready:
Details of outstanding deposits: Name and address of depositors, amount of deposit, terms and conditions of deposit, and interest to be paid.
Deposits accepted from members and public: Amount outstanding and the status of such deposits.
Repayment of deposits: Amount repaid, date of repayment, and other relevant details.
Step 2: Login to the MCA Portal:
Go to the MCA website (www.mca.gov.in) and log in using your MCA account credentials.
Step 3: Select the Form DPT-4:
From the dashboard, go to "MCA Services" → "View Public Documents" or "File Forms".
Search for Form DPT-4 and select it.
Step 4: Fill in the Form:
Fill in the details in Form DPT-4, which includes:
Company Details: Name, CIN, registered office address, etc.
Outstanding Deposit Details: Information on outstanding deposits and their terms.
Repayment Information: If applicable, details about the repayments made to depositors.
Step 5: Verification:
After filling in all the details, verify the information carefully.
Step 6: Digital Signature:
Once the form is filled, digitally sign the form using the Digital Signature Certificate (DSC) of the authorized signatory (Director/CS).
Step 7: Payment of Fees:
Pay the filing fees as prescribed by the Ministry of Corporate Affairs for filing Form DPT-4. The fees can be paid online through net banking.
Step 8: Submit the Form:
After payment, submit the form to the ROC. After submission, you will receive an acknowledgment, and the form will be processed by the MCA.
Section 180(1)(a) and (1)(c) of the Companies Act, 2013 - Notice, Resolution, and Explanatory Statement
Section 180(1) of the Companies Act, 2013 deals with the powers of the board of directors of a company and the restrictions on such powers. This section lays down the limit beyond which the board cannot act without the approval of the shareholders through a special resolution.
1. Section 180(1)(a): Power to Sell, Lease, or Otherwise Dispose of the Whole or Substantially the Whole of the Undertaking
Section 180(1)(a) specifies that the Board of Directors cannot, without the approval of the shareholders by special resolution, sell, lease, or otherwise dispose of the whole or substantially the whole of the company’s undertaking.
If the company intends to dispose of a significant portion of its assets (substantial part of the business), the board must obtain the approval of shareholders through a special resolution passed in a general meeting.
2. Section 180(1)(c): Power to Borrow Money Beyond the Aggregate of Paid-Up Capital and Free Reserves
Section 180(1)(c) mandates that the board of directors cannot borrow money exceeding the company’s paid-up capital and free reserves without the prior approval of shareholders by passing a special resolution.
This provision ensures that the company does not take excessive borrowings that may jeopardize the interests of the shareholders and creditors.
3. Procedure for Passing Special Resolution Under Sections 180(1)(a) and 180(1)(c)
Notice to Shareholders
The company must send a notice to its shareholders at least 21 days before the date of the general meeting. The notice should include:
A statement of the proposed resolution.
Details of the resolution, including the reasons for the sale/lease of assets (under Section 180(1)(a)) or the proposed borrowing (under Section 180(1)(c)).
A clear mention that approval of the shareholders by special resolution is required.
Special Resolution
A special resolution is one that is passed by a majority of not less than three-fourths of the members voting at the meeting.
The resolution will specifically approve:
Sale/lease or disposal of undertaking (Section 180(1)(a)).
Borrowing money exceeding the limits prescribed under the Act (Section 180(1)(c)).
Explanatory Statement
An explanatory statement should accompany the notice. It must:
Explain the purpose and need for the resolution.
Provide details of the transaction (sale, lease, borrowing).
Disclose any material interests of directors or their relatives in the resolution.
This explanatory statement is required as per Section 102 of the Companies Act, 2013 and ensures transparency regarding the reasons and implications of the proposed resolution.
4. Filing the Resolution with the Registrar
After passing the special resolution, the company must file the resolution with the Registrar of Companies (ROC) in Form MGT-14 within 30 days from the date of passing the resolution.
This form should include a copy of the special resolution and the explanatory statement.
Summary of Key Steps in Filing and Approval:
Prepare the notice for the shareholders with full details and an explanatory statement.
Pass a special resolution in the general meeting by the required majority (3/4th vote).
File Form MGT-14 with the ROC within 30 days of the resolution being passed.
For Form DPT-4, file online with the details of outstanding deposits or repayments.
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