Register of contracts or arrangements in which directors are interested

(1)

Every company shall keep one or more registers giving separately the particulars of all contracts or arrangements to which sub-section

(2)

of section 184 or section 188 applies, in such manner and containing such particulars as may be prescribed and after entering the particulars, such register or registers shall be placed before the next meeting of the Board and signed by all the directors present at the meeting.

(2)

Every director or key managerial personnel shall, within a period of thirty days of his appointment, or relinquishment of his office, as the case may be, disclose to the company the particulars specified in sub-section ( 1 ) of section 184 relating to his concern or interest in the other associations which are required to be included in the register under that sub-section or such other information relating to himself as may be prescribed.

(3)

The register referred to in sub-section ( 1 ) shall be kept at the registered office of the company and it shall be open for inspection at such office during business hours and extracts may be taken therefrom, and copies thereof as may be required by any of the company shall be furnished by the company to such extent, in such manner, and on payment of such fees as may be prescribed.

member

(4)

The register to be kept under this section shall also be produced at the commencement of every annual general meeting of the company and shall remain open and accessible during the continuance of the meeting to any person having the right to attend the meeting.

(5)

Nothing contained in sub-section ( 1 ) shall apply to any contract or arrangement—

(a)

for the sale, purchase or supply of any goods, materials or services if the value of such goods and materials or the cost of such services does not exceed five lakh rupees in the aggregate in any year; or

(b)

by a banking company for the collection of bills in the ordinary course of its business.

(6)

Every director who fails to comply with the provisions of this section and the rules made thereunder shall be liable to a penalty of twenty-five thousand rupees.

Notes, amendments & references (7)

Shall apply to section 8 companies only if the transaction with reference to section 188 on the basis of terms and conditions of the contract or arrangement exceeds one lakh rupees, vide notification no. G.S.R. 466(E) dated 5th June, 2015.

(The exceptions, modifications and adaptations provided above shall be applicable only to those companies covered under section 8 of the said act which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June, 2017)

To view the notification, Click Here

Refer rule 16 and Form No.MBP 4 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014.To view the rule, Click Here

Refer rule 16 and Register MBP 4 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014.To view the rule, Click Here

Refer rule 12 and Table annexed to the Companies (Registration Offices and Fees) Rules, 2014. To view the rule, Click Here

Banking Company means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)