It was a routine practice followed by the Companies to take declaration from a Director under section 274 (1) (g) of the CA 1956 as on last day of the financial year and Disclosure of Interest from a Director under Section 299 (1) before beginning of the next financial year in a form 24AA. Because of commencement of new Act the said Disclosure obtained before 31st March 2014 may not hold good & fresh disclosure is required.
On applicability of Companies Act 2013 with effect from 1st April, 2014 director is required to make a disclosure of his interest to the Company under section 184 (1) & (2) of the CA 2013. The said disclosure is required to be made in form MBP 1 and will be for the financial year 2014-15. The said declaration is required to be placed & noted in the first Board meeting of the financial year 2014-15. Further said Board Resolution ( noting of declaration) is required to be filed under Rule 8 (5) of Chapter XII with the Registrar in Form MGT 14 within 30 days of passing.
The said disclosure will provide the details of his interest in all other companies,entities and concerns along with his shareholding, irrespective whether Company is entering into a contract or transactions with such entities or concerns or not. The said disclosure will act as a general disclosure and will preclude director form a default if any happen because Company or its officer entering into a transaction with such entity or concern without his knowledge.
Hence it would not be a good on the part of a Director to avoid giving this disclosure or avoid providing full information to the Company. Default under this sections will lead to automatic vacation of office by a Director without any recourse available to it.
Declaration under section 274 (1) (g) of CA 1956 will continue to be in old format since it was pertaining to the financial year 2013-14.
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