Section 299

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Moumita Sinha (Querist)

26 July 2013 Whether there is any time limit to give notice of disclosure by interested director u/s299 i.e before how many days from the board meeting notice is to be served?

Ajay Mishra

Ajay Mishra (Expert)

26 July 2013
Time for disclosure of concern or interest in a particular contract or arrangement:

Every director of a company, who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement, or proposed contract or arrangement, entered into or to be entered into, by or on behalf of the company, shall disclose the nature of his concern or interest at a meeting of the Board of directors. Section 299(2) relates to the time of disclosure, which may be described as under, depending upon the status of contract.

In the case of proposed contract or arrangement, the disclosure shall be made at the meeting of the Board at which the question of entering into the contract or arrangement is first taken into consideration, or if the director was not, at the date of that meeting, concerned or interested in the proposed contract or arrangement, at the first meeting of the Board held after he becomes so concerned or interested. [Section 299(2)(a)]

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