The changes with respect to directors declaration under the new Companies Act are as follows :
Section 274 (1) (g):
declaration of director now not restricted to a public company:
Under the previous act the director had to give a
declaration that he is he is not the director of a public company which has not
filed annual return for 3 continuous financial years and has not failed to
repay the deposits but under the new companies act, 2013 the director has to
give the same declaration with respect to any company. The words public company
has been replaced by company
Status: New section
164(2), not notified
Section 299: The following are the changes :
1) Time for making
disclosure: Under the new companies act the disclosure regarding interest in
contracts and arrangement has to be made by any director at first meeting of
board when he becomes director and 1st meeting of the board in every financial
year or where there is a change in disclosure. Earlier the disclosure was made
at the board meeting when the contract or arrangement was considered or in
other cases at first meeting of the
board after the directors becomes interested in any contract or arrangement
2) Penalty: The penalty earlier for not complying with the
provision earlier fine upto 50 thousand now the penalty is imprisonment for 1
years or fine which may extend from 50 thousand to one year.
3) Format of Form 24AA has changes. Now the form is Form
12.1
4) The notices given by directors have to be preserved for a
period of 8 years from the financial year in which they are given at the
registered office address of the company in the safe custody of the secretary
of the company or any person so appointed by the board (New Requirement Chapter
XII, Rule 12.7)
Status : New Section 184, not notified
