Statutory Books and Registers under Companies Act, 1956 - REGISTER OF CONTRACTS IN WHICH DIRECTORS ARE INTERESTED

Section and Name           Section 301  REGISTER OF CONTRACTS IN WHICH DIRECTORS ARE INTERESTED

Format The register should contain the following particulars, to the extent they are applicable in case of each contract: date of the contract; names of the parties to the contract; principal terms and conditions and whether the terms are in accordance with prevailing market rates or practices; date of receipt of particulars of contract at the office of the company; date of entry in the register; date on which the contract was placed before the Board at its meeting for approval; names of directors present; names of interested directors; names of directors voting for and against the contract or arrangement and names of those remaining neutral; date of next meeting at which the register was placed for signature and names of directors present in that meeting.

Entries in the register should be made within 7 days of the date of the Board meeting at which approval of the contract or arrangement was obtained or, if no approval of the Board is required, within 7 days of the receipt at the registered office of the company of particulars of such contract or arrangement, or within 30 days of the date of the contract or arrangement, whichever is later.

Where to Kept  The register should be maintained at the registered office of the company.

Inspection "The register should be open for inspection to members during the business hours of the company, subject to such  reasonable restrictions as the company may impose by its articles or in general meeting so that not less than 2 hours  in each working day of the company are allowed for inspection. Members can inspect the register without payment  of any fee."

Authentication  Entries in the register should be authenticated by the secretary of the company or by any other person authorized by the Board for the purpose, by appending his signature to each entry.

Preservation      The register should be preserved permanently and should be kept in the custody of the secretary of the company or any other person authorized by the Board for the purpose.