Form mbp-1 - disclosure of directors interest.

Reply to your queries:

Query No. 1 - Not required to file details of relatives since the form itself does not provides for

Query No. 2 -  MGT-14 is to be filed since Sec 117 provides for registration of resolutions passed pursuant to Section 179(3).

Regards,

Dharmesh Shah

B.Com., L.L.B., A.C.S.

dharmesh_blue7 @ yahoo.co.in

Respected Sir/Mam,

Thanks in advance. i want to confirm that in the case of a small Company having paid up capital less than 50 Lac is yet to filed the form MBP-1. Now the company has passed board resolution on 30.08.2014 for the Approval of Balance Sheet, which is required to be filed in MGT-14 within 30 days. Can we put the resolution for MBP-1 in this Board meeting.

Hi,

Section 184(1) reads as follows:

"Every director shall at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting held aftersuch change, disclose his concern or interest...."

It is understood from the facts of the case that the board meeting held on 30th August, 2014 would not have been the first board meeting of the financial year. The disclosure in form MBP-1 should have been noted at the first board meeting which was held for the FY commencing April, 2014.

Hence, there is a contravention of Section 184(1) for which the penal provision u/s 184(4) will apply:

"If a director of the company contravenes the provisions of sub-section (1) or subsection (2), such director shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to one lakh rupees, or with both."

However, it may be added that although the penalty has been attracted, it would be open to the company to take note of the said form MBP-1 at the board meeting held on 30th August, 2014 and file form MGT-14 accordingly.

Hope this clarifies the issue raised.

Dear Sir,

Please confirm whether a director has to disclose his interest in a foreign company as well....

Respected sir,

connected with your answer i would like to know that,wether the directors can be forced to declare intrest of their relartives or is there any complusion that directors have to disclose the intrest of their relatives?

can anyone help ?

if a director is a share trader , then do he have to intimate evey change in MBP-1 ?