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hi directors are very important for the company directors are involved in formulating strategies policy decisions and directing the company in the right path at time these directors or their relatives might be directors or a shareholder in some other company also for the benefit of that company there are chances to mislead this particular company so companies act has made it mandatory for all the directors to disclose their interest in other entities in form mbp one when this form has to be disclosed at the time of their appointment and at the beginning of every financial year in the first board meeting or whenever a new interest is arising in another entity when i talk about other entity the other entity can be a limited company it can be an llp a partnership firm or an association of persons whenever a director or his relative is a director or a shareholder in some other entity he has to disclose his interest with the board of directors this particular disclosure will be stored for