Disclosure of interests requirement ensures members' informed decisions and creates trust and compensation duties for undisclosed benefits. A company must annex to a meeting notice a statement disclosing material facts about each item of special business, including the nature of any financial or other interest of every director, manager, other key managerial personnel and their relatives, and other information enabling members to understand the business. Documents referred to must be made available for inspection at specified time and place. Non-disclosure or insufficient disclosure that results in benefit to the relevant persons creates a trust in favour of the company and a duty to compensate the company; failure to comply attracts penal consequences for defaulting persons.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disclosure of interests requirement ensures members' informed decisions and creates trust and compensation duties for undisclosed benefits.
A company must annex to a meeting notice a statement disclosing material facts about each item of special business, including the nature of any financial or other interest of every director, manager, other key managerial personnel and their relatives, and other information enabling members to understand the business. Documents referred to must be made available for inspection at specified time and place. Non-disclosure or insufficient disclosure that results in benefit to the relevant persons creates a trust in favour of the company and a duty to compensate the company; failure to comply attracts penal consequences for defaulting persons.
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