Section 305 – The Companies Act,1956

The Companies Act, 1956

305. Duty of directors etc. to make disclosure

1[305. Duty of directors, etc., to make disclosure.-

(1) Every director, managing director, 2[***] manager or secretary of any company, who is appointed to or relinquishes, the office of director, managing director, 2[***] manager or secretary of any other body corporate, shall, within twenty days of his appointment to, or as the case may be, relinquishment of, such office, disclose to the company aforesaid the particulars relating to the office in the other body corporate which are required to be specified under sub-section (1) of section 303; and if he fails to do so, he shall be punishable with fine which may extend to 3[five thousand rupees].

(2) The provisions of sub-section (1) shall also apply to a person deemed to be a director of the company by virtue of the Explanation to subsection (1) of section 303 when such person is appointed to, or relinquishes, any of the offices in the other body corporate referred to in sub-section (1).]

1. Subs. by Act 65 of 1960, sec. 11, for section 305 (w.e.f. 28-12-1960).

2. The words “managing agent, secretaries and treasurers,” omitted by Act 53 of 2000, sec. 150 (w.e.f. 13-12-2000).

3. Subs. by Act 53 of 2000, sec. 150, for “five hundred rupees” (w.e.f. 13-12-2000).

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