Mr A an interested director of XYZ Company does not disclose his interest in a contract On prospecti...........

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

Mr. A, an interested director of XYZ Company does not disclose his interest in a contract. On prospective discovery of his interest, BODs can annul the contract. Can they do so?

Yes, the contract is voidable at the option of company

No, contract cannot said to be voidable and is a valid contract.

Yes, the contact is void- ab- initio

None of the above

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Explanation:

As per Section 184(3) of Companies Act, 2013, a contract or arrangement entered into by the company without disclosure, shall be voidable at the option of the company.