Question And Answer

While Section 184(2) of the Companies Act, 2013 allows a Director (i) holding directly or indirectly, more than 2% shareholding of a body corporate, or (ii) who is a promoter, owner or member, as the case may be, in a firm or other entity; to disclose his interest and participate in the Board Meeting, Rule 15(2) of the Companies (Meetings of Board and its Powers) Rules, 2014 read with Section 188 of Companies Act, 2013 prohibits presence of an interested director in the Meeting during the discussions on the subject matter of the resolution relating to contract or arrangement with related party. Request your kind self to provide clarity on the above. We are unable to assess whether to allow an interested Director to participate in the Board Meeting or not due to the confusion created in the interpretation of the above referred provisions of law.

Section 188 Related party transactions.

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