Directors of the Company have to present Disclosure of his / her Interest in the first Board Meeting of every Financial year in Form MBP-1 and DIR-8. Moreover, It is mandatory for all the directors to submit every year.
The Board in its first Board Meeting of the Financial year has to take the note of the disclosure of interest submitted by the Director and also pass the necessary resolution taking the note on record in a specific format.
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.
Form MBP-1 needs to be placed in the first Board meeting of the Financial Year. Further, the resolution taking note of such declaration (in form MBP-1) needs to be filed with the ROC within 30 days of the board meeting.
Section 184 of the Companies Act, 2013 (the Act) relates to “Disclosure of interest by directors”. The object of Section 184 of the Act is to bring to the notice of the directors the conflict of interest and duty of any of their colleagues on the Board.