189. Register of contracts or arrangements in which directors are interested
(1) Every company shall keep one or more registers giving separately the particulars
of all contracts or arrangements to which sub-section (2) of section 184 or section 188
applies, in such manner and containing such particulars as may be prescribed and after
entering the particulars, such register or registers shall be placed before the next meeting of
the Board and signed by all the directors present at the meeting.
(2) Every director or key managerial personnel shall, within a period of thirty days of
his appointment, or relinquishment of his office, as the case may be, disclose to the company
the particulars specified in sub-section (1) of section 184 relating to his concern or interest in
the other associations which are required to be included in the register under that
sub-section or such other information relating to himself as may be prescribed.
(3) The register referred to in sub-section (1) shall be kept at the registered office of the
company and it shall be open for inspection at such office during business hours and
extracts may be taken therefrom, and copies thereof as may be required by any member of the
company shall be furnished by the company to such extent, in such manner, and on payment
of such fees as may be prescribed.
(4) The register to be kept under this section shall also be produced at the commencement
of every annual general meeting of the company and shall remain open and accessible during
the continuance of the meeting to any person having the right to attend the meeting.
(5) Nothing contained in sub-section (1) shall apply to any contract or arrangement—
(a) for the sale, purchase or supply of any goods, materials or services if the
value of such goods and materials or the cost of such services does not exceed five
lakh rupees in the aggregate in any year; or
(b) by a banking company for the collection of bills in the ordinary course of its
business.
(6) Every director who fails to comply with the provisions of this section and the rules
made thereunder shall be liable to a penalty of twenty-five thousand rupees.