Section 184

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This query is : Resolved

C.S. CHANDANI SARUPARIA (Querist)
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09 July 2014 Sir/Mam,

As per sec 184 of CA, 2013 newly appointed director have to disclose their interest in the next board meeting held after their appointmnet for which they have to disclose their interest in MBP 1. Now my query is that-

1. Whether the company in which he is appointed have to again file MGT 14 for disclosure of Interest by newly appointed director.
2. And if that newly appointed director is already a director in other 5 companies, whether he have to disclose his interest again in all the existing companies.
3. Whether all existing 5 companies also have to file MGT 14 for disclosure of Interest.

Please reply specifically for each query.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2014 1. Yes, because the board of directors of the company has to make a note of the disclosure in the board meeting and that resolution should be attached with MGT-14.

2. Yes on the same analogy given herein above.

3. Yes, for the reason stated above.

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C.S. CHANDANI SARUPARIA

C.S. CHANDANI SARUPARIA (Querist)
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09 July 2014 But why other companies will file MGT 14. It will be an expense on their part without any return.

Ankur Garg

Ankur Garg (Expert)
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10 July 2014 Agree with the opinion of Mr. Warrier.

Dear Chandani your point is right that other 5 companies won’t get any return by filing form MGT.14 for their Director who joined one more company as director.

But it is duty of that director to give revised disclosure in form MBP.1 and accordingly it is duty of company to take note of that MBP.1 through a Board resolution and file it through form MGT.14.

It is highly burdensome for companies but there is no escape route.Form MGT.14 has become a revenue generation method for MCA.

Ankur

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C.S. CHANDANI SARUPARIA

C.S. CHANDANI SARUPARIA (Querist)
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11 July 2014 Completely agree with you sir.

One more thing-

We make the same disclore at the time of filing DIR 12 for appointment of director. A sheet for interest in other entities is attached with the form then why do we need to provide the same info again and again.

Ankur Garg

Ankur Garg (Expert)
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12 July 2014 Disclosure in DIR 12 is a not officially a disclosure u/s 184 and cannot be treated as same. Section 184 is a specific section w.r.t. disclosure of Interest by Directors.

Even I don’t understand the logic behind asking such details in form DIR.12 when specific section 184 is there.

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