Section 148: Disclosure of interest

148. Disclosure of interest (1) A director of a company shall, forthwith after becoming aware of the fact that he is interested in a transaction or proposed transaction with the company, cause to be entered in the interests register where it has one, and, where the company has more than one director, disclose to the Board of the company— (a) where the monetary value of the director’s interest can be quantified, the nature and monetary value of that interest; or (b) where the monetary value of the director’s interest cannot be quantified, the nature and extent of that interest. (2) A director of a company shall not be required to comply with subsection (1) where— (a) the transaction or proposed transaction is between the director and the company; and (b) the transaction or proposed transaction is or is to be entered into in the ordinary course of the company’s business and on usual terms and conditions. (3) For the purpose of subsection (1), a general notice entered in the interests register or disclosed to the Board to the effect that a director is a shareholder, director, officer or trustee of another named company or other person and is to be regarded as interested in any transaction which may, C35 – 95 [Issue 10] Companies Act after the date of the entry or disclosure, be entered into with that company or person, is a sufficient disclosure of interest in relation to that transaction. (4) A failure by a director to comply with subsection (1) shall not affect the validity of a transaction entered into by the company or the director. (5) Any director who fails to comply with subsection (1) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 100,000 rupees and to imprisonment for a term not exceeding one year. [S. 148 amended by s. 13 (h) of Act 11 of 2018 w.e.f. 9 August 2018.]