Section 299 of companies act, 1956

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 We have a Private company in which a Person named XYZ is holding office as director and has already submitted the Form 24AA in the last month of the financial year of the company. We follow calender Year as our accounting year.

Now he is getting appointed as director in another company. Should he be disclosing us the interest in that another company as director in the coming Board meeting OR he should only inform us next year as a part of renewal of his notice.

Also wanted to understand the meaning of "first meeting of Board held after the director becomes concerned or interested" given under section 299 (2)(b). Does it mean First meeting of the company held in the first quarter OR the meeting which is called subsequently upon the director becoming interested. ?

Please advise.

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2012 Hi

There are three stage of declaration of interest of director to the company:

1. At the time of appointment.
2. At the end of financial year.
3. At the time of Board Meeting after appointment in another company or when any contract is discussed with that company in which such director is going to be appointed in another company.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 Thanks so much Ajay......

So in our above case, Director XYZ will have to give us a notice of his appointment in another company as director in our next Board meeting as per section 299 ? (notice having no prescribed format known as 24AA, disclsoing the nature of interest whether direct or indirect)

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2012 Hi

General Notice of interest, it should not be in format as given in Form-24AA. You can give it in another format.

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