Mr A Director of A Pvt Ltd is also the partner in Alpha Traders Alpha Traders is expecting to receiv...........

Companies Act-Phase (I & II) Board-powersandMeetings

Mr A. Director of A. Pvt Ltd is also the partner in Alpha Traders. Alpha Traders is expecting to receive an order from A Pvt Ltd. The BM convened to grant this order has Mr. A present thereat. As an Interested Director can he participate?

Yes, as an interested director is required not to vote only if he is a “Director “ in benefiting “Company”

Yes, but only on disclosing interest

No, Interested Directors are not allowed to vote in matters pertaining to outside entities where they are owners.

Yes, but such action shall be ratified by Independent Directors’ Committee

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Explanation:

As it is a Private Company. In Public Company this won’t be possible

Manner of disclosure:

As per Rule 9 of Companies (Meetings of Board and its Powers) Rules, 2014, the director shall disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals, including his shareholding, if any, by giving a notice in writing in Form MBP-1. The director shall not participate at the meeting of the Board in which such a contract or arrangement is discussed in which the director is interested.
Also, every Company shall maintain one or more registers in Form MBP-4 as per Rule 16 of Companies (Meetings of Board and its Powers) Rules, 2014 furnishing particulars of company or companies or bodies corporate, firms, or other association of individuals in which the director is, directly or indirectly, interested.