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It may sometimes happen that directors of the company may have some interest in the contracts entered into by the companies.Sometimes directors also make use of his position for their personal benefit.

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640B and rule 20A of the companies (Central Government’s General Rules and Forms) 1956. 297: Ø Obtain the consent of the Board or Central Government or Shareholders as the case may be, Ø Make disclosure of Interest at the Board Meeting in form 24AA Ø Enter the particulars in the register of contracts with director within 7 days Ø Place the register at the first meeting of the Bo D and obtain signature Every director of a company who is in any way, whether directly or indirectly concerned or interested in a contract or arrangement, or proposed contract or arrangement entered into or to be entered into, by or on behalf of the company, shall disclose the nature of his concern or interest at a meeting of the Board of directors.

In the case of a proposed contract or arrangement, the disclosure is required to be made by a director under sub-sec.

(1) shall be made at the meeting of the board at which the question of entry into the contract or arrangement is first taken into consideration, or if the director was not, at the date of the meeting, concerned or interested in the proposed contract or arrangement, at the first meeting of the Board held after which he becomes so concerned or interested.

In case of any other contract, the required disclosure shall be made at the first meeting of the Board held after the directors becomes concerned or interested into contract or arrangement.

She caught up to traffic and then looked back down at her phone — without seeing the two Providence police officers watching her from an undercover SUV in the next lane.