Section 189 - Register of contracts or arrangements in which directors are interested

Companies Must Keep Register of Director Contracts as per Sections 184(2) & 188; Penalties for Non-Compliance Apply

Every company must maintain a register detailing contracts or arrangements involving directors, as specified in sections 184(2) and 188 of the Companies Act, 2013. This register must be presented at the next Board meeting and signed by attending directors. Directors and key managerial personnel must disclose their interests within thirty days of appointment or resignation. The register should be available for inspection at the company's registered office and at annual general meetings. Exceptions include contracts below five lakh rupees or routine banking transactions. Non-compliance results in a penalty of twenty-five thousand rupees for directors.