Section 307 - Register of directors' shareholdings, etc. - Companies Act, 1956

Register of directors' shareholdings Register of directors' shareholdings, etc. 307. (1) Every company shall keep a register showing, as respects each director of the company, the number, description and amount of any shares in, or debentures of, the company or any other body corporate, being the company's subsidiary or holding company, or a subsidiary of the company's holding company, which are held by him or in trust for him, or of which he has any right to become the holder whether on payment or not. (2) Where any shares or debentures have to be recorded in the said register or to be omitted therefrom, in relation to any director, by reason of a transaction entered into after the commencement of this Act and while he is a director, the register shall also show the date of, and the price or other consideration for, the transaction: Provided that where there is an interval between the agreement for any such transaction and the completion thereof, the date so shown shall be that of the agreement. (3) The nature and extent of any interest or right in or over any shares or debentures recorded in relation to a director in the said register shall, if he so requires, be indicated in the register. (4) The company shall not, by virtue of anything done for the purposes of this section, be affected with notice of, or be put upon inquiry as to, the rights of any person in relation to any shares or debentures. (5) The said register shall, subject to the provisions of this section, be kept at the registered office of the company, and shall be open to inspection during business hours (subject to such reasonable restrictions as the company may, by its articles or in general meeting, impose, so that not less than two hours in each day are allowed for inspection) as follows: (a) during the period beginning fourteen days before the date of the company's annual general meeting and ending three days after the date of its conclusion, it shall be open to the inspection of any member or holder of debentures of the company; and (b) during that or any other period, it shall be open to the inspection of any person acting on behalf of the Central Government or of the Registrar. In computing the fourteen days and the three days mentioned in this sub-section, any day which is a Saturday, a Sunday or a public holiday shall be disregarded. (6) Without prejudice to the rights conferred by sub-section (5), the Central Government or the Registrar may, at any time require a copy of the said register, or any part thereof. (7) The said register 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. If default is made in complying with this sub-section the company, and every officer of the company who is in default, shall be punishable with fine which may extend to [1] [five thousand rupees]. (8) If default is made in complying with sub-section (1) or (2), or if any inspection required under this section is refused, or if any copy required thereunder is not sent within a reasonable time, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to [2] [fifty thousand rupees] and also with a further fine which may extend to [3] [two hundred rupees] for every day during which the default continues. (9) In the case of any such refusal, the [4] [Central Government or Tribunal, as the case may be] may also, by order, compel an immediate inspection of the register .[5] (10) For the purposes of this section ___ (a) any person in accordance with whose directions or instructions the Board of directors of a company is accustomed to act, shall be deemed to be a director of the company; and (b) a director of a company, shall be deemed to hold or to have an interest or a right in or over, any shares or debentures, if a body corporate other than the company holds them or has that interest or right in or over them, and either (i) that body corporate or its Board of directors is accustomed to act in accordance with his directions or instructions; or (ii) he is entitled to exercise or control the exercise of one-third or more of the total voting power exercisable at any general meeting of that body corporate. [6] [(11) * * *] -------------------------------------------- Notes:- [1] Substituted for "five hundred rupees" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [2] Substituted for "five by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [3] Substituted for "twenty rupees" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [4] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substituted for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [5] Fees prescribed is Rs. 500, w.e.f. 1-4-2000. On notification of the commencement of the amendment, power will be transferred to the Central Government/National Company Law Tribunal. [6] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. Prior to its omission sub-section (11), as Inserted by the Companies (Amendment) Act, 1960, Act 65 of 1960, it read as under: "(11) The provisions of this section and section 308 shall apply to managing agents, secretaries and treasurers and managers as they apply to directors."