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Under section 184(1) of the Companies Act, 2013, when must a director disclose his concern or interest in other companies, firms and bodies corporate?

Question and options

Under section 184(1) of the Companies Act, 2013, when must a director disclose his concern or interest in other companies, firms and bodies corporate?

  1. At the first Board meeting he attends as director, at every annual general meeting, and at the next general meeting after any change in the disclosure

  2. At the first Board meeting he attends as director, at the first Board meeting of every financial year, and at the first Board meeting after any change in the disclosure

  3. Within thirty days of his appointment, at the first Board meeting of every financial year, and within thirty days of any change in the disclosure

  4. At the first Board meeting he attends as director, at the last Board meeting of every financial year, and at the first Board meeting after any change in the disclosure

Answer and explanation

Correct answer: B - At the first Board meeting he attends as director, at the first Board meeting of every financial year, and at the first Board meeting after any change in the disclosure

Section 184(1) of the Companies Act, 2013 requires the disclosure at the first Board meeting in which the director participates, then at the first Board meeting of each financial year, and whenever the disclosure changes, at the first Board meeting held after the change. The disclosure is made to the Board, not to the general meeting, and the annual refresh is at the start of the year, not at its last meeting. The Act sets these meeting-based points, not thirty-day periods.

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