Disclosure u/s 184 (1) is a general notice of disclosure given by every director about his/her interest in any companies, bodies corporate, firms or other association of individuals, along with shareholding. All directors of a Company are covered under the disclosure requirement given u/s 184(1). A director has to submit the Notice of Interest to the Company under section 184(1) in Form MBP-1. The Director should present Form MBP-1 in the first Board Meeting held in every financial year.
Sample : Form MBP-1 – Notice of Director Interest
Here is a sample Form MBP-1 for Notice of Interest by Director to the Company for each financial year.
There are two separate disclosure requirements in sec 184 – sec 184 (1) and sec 184 (2):
Disclosure u/s 184 (1) – Every director should give a general notice of interest in any company along with shareholding.
Disclosure u/s 184 (2) is a specific disclosure given by the director at the meeting of the Board. A contract is discussed and entered into with any entity in which such a director has an interest in.
All directors of a Company should comply with the disclosure requirement as per Sec 184(1). When a Disclosure u/s 184 (2) is a specific disclosure which is to be given when the Company enters into a contract with an entity.
Following directors are covered by the disclosure requirements:
-A director has a shareholding of a body corporate of more than 2%.
-A director who is a promoter/manager/ CEO of the other body corporate