Section 289 of the Companies Act, 2013
Section 289 of the Companies Act, 2013 deals with the disclosure of interest by directors in contracts or arrangements with the company.
🔹 Section 289 – Register of Contracts or Arrangements in which Directors are Interested
🟡 Key Provisions:
Register of Contracts or Arrangements:
Every company shall maintain a register of contracts or arrangements in which directors are interested.
Details to be Entered:
The register should include details of:
Contracts or arrangements entered into by the company in which a director is directly or indirectly interested.
The nature of the director’s interest.
Date of entering into the contract or arrangement.
Inspection:
The register shall be kept at the registered office of the company.
It shall be open for inspection by members during business hours, and copies shall be provided on payment of fees as prescribed.
Filing with Registrar:
If applicable, the details of such contracts may also need to be filed with the Registrar of Companies in prescribed forms (like in Board’s report).
✅ Objective:
To ensure transparency about contracts or arrangements in which directors have an interest, thereby avoiding conflict of interest and promoting good corporate governance.
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