Form MBP-1: when directors must disclose their interests under section 184

Last updated 25 Oct 2026 · India

Short answer. Under section 184(1) of the Companies Act and Rule 9 of the Meetings of Board Rules, every director must disclose their concern or interest in any company, body corporate, firm or other association in Form MBP-1: at the first board meeting they attend as a director, at the first board meeting of every financial year, and at the first board meeting after any change. A director interested in a contract with such a party must disclose it and stay out of the discussion and vote (section 184(2)). The company keeps the forms and records contracts in the MBP-4 register. Failing to disclose attracts a penalty of ₹1 lakh under section 184(4).

Step by step

At the first board meeting of April each year, table MBP-1 from every director.
Check each MBP-1 against the MCA director master data and last year's form.
Record in the minutes that the disclosures were received.
Update MBP-4 for contracts with the disclosed entities.
Collect a fresh MBP-1 whenever a director joins another board or firm.

Common mistakes

Taking MBP-1 only once at appointment.
Leaving out firms and LLPs; the form covers more than companies.
Interested director voting on a related contract.
Not minuting receipt of the disclosures.

Checklist

MBP-1 from every director at the first meeting of the year
Receipt minuted
MBP-4 updated
Fresh MBP-1 on any change

Frequently asked questions

When is MBP-1 given?

At the first board meeting a director attends, at the first board meeting of every financial year, and at the first meeting after any change in interests.

Is MBP-1 filed with the ROC?

No. It is given to the company and kept with its records; receipt is noted in the board minutes.

What is the penalty for not disclosing interest?

Section 184(4) provides a penalty of ₹1 lakh for the director.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 25 Oct 2026.

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