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If a director is in any way straight or not directly involved in a proposed transaction or arrangement with the corporate he must declare the character and extent of the interest to the opposite directors and this declaration should be made before the company enters into the contract or arrangement (Companies Act 2006, section 177). This declaration may (however need not) be made at a gathering of the directors or by notice in writing (Companies Act 2006, section 184) or by a normal notice (Firms Act 2006, section 185). Where the declaration is required of a sole director of an organization that should have a couple of director, it have to be in writing (Companies Act 2006, section 186). A director needn’t declare an curiosity if it cannot moderately be anticipated to provide rise to a conflict of curiosity or the opposite directors are, or ought to be, conscious of the curiosity or it considerations phrases of his service contract (Firms Act 2006, part 177).
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