law: Companies Act, 2013 
  184.
  
    Disclosure
  
  of interest by director.
  1.      Every director shall
  
  at the first meeting of the Board in which he participates as a director and
  
  thereafter at the first meeting of the Board in every financial year or
  
  whenever there is any change in the disclosures already made, then at the first
  
  Board meeting held after such change, disclose his concern or interest in any
  
  company or companies or bodies corporate, firms, or other association of
  
  individuals which shall include the shareholding, in such manner as may be
  
  prescribed.
  2.      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—
  a.     
  
    with
  
  a body corporate in which such director or such director in association with
  
  any other director, holds more than two per cent. shareholding of that body
  
  corporate, or is a promoter, manager, Chief Executive Officer of that body
  
  corporate; or
  b.    
  
    with
  
  a firm or other entity in which, such director is a partner, owner or member,
  
  as the case may be, shall disclose the nature of his concern or interest at the
  
  meeting of the Board in which the contract or arrangement is discussed and
  
  shall not participate in such meeting:
  Provided
  
  that where any director who is not so concerned or interested at the time of
  
  entering into such contract or arrangement, he shall, if he becomes concerned
  
  or interested after the contract or arrangement is entered into, disclose his
  
  concern or interest forthwith when he becomes concerned or interested or at the
  
  first meeting of the Board held after he becomes so concerned or interested.
  1.     
  2.     
  3.      A contract or
  
  arrangement entered into by the company without disclosure under sub-section (2 )
  
  or with participation by a director who is concerned or interested in any way,
  
  directly or indirectly, in the contract or arrangement, shall be voidable at
  
  the option of the company.
  4.      If a director of the
  
  company contravenes the provisions of sub-section (1 ) or subsection (2 ),
  
  such director shall be punishable with imprisonment for a term which may extend
  
  to one year or with fine which shall not be less than fifty thousand rupees but
  
  which may extend to one lakh rupees, or with both.
  5.      Nothing in this
  
  section—
  a.     
  
    shall
  
  be taken to prejudice the operation of any rule of law restricting a director
  
  of a company from having any concern or interest in any contract or arrangement
  
  with the company;
  b.    
  
    shall
  
  apply to any contract or arrangement entered into or to be entered into between
  
  two companies where any of the directors of the one company or two or more of
  
  them together holds or hold not more than two per cent. of the paid-up share
  
  capital in the other company.