It is mandatory for every director of a company to disclose his interest or nature of his concern in other companies in which he is a director.

The statement is largely correct, but with specific nuances as per the Companies Act, 2013. Provisions of the Companies Act, 2013: Section 184 of the Companies Act, 2013, read with Rule 9 of the Companies (Meetings of Board and its Powers) Rules, 2014, mandates disclosure by directors regarding their concern or interest in any company or companies or body corporate (including shareholding interest), firms, or other associations of individuals. Initial Disclosure: A director must give a notice in writing at the first meeting of the Board after being appointed as a director. Subsequent Disclosure: This disclosure must be made at the first meeting of the Board in every financial year. Change in Disclosure: Whenever there is any change in the disclosure already made, it must be disclosed in the next Board meeting. Disclosure at Meeting of Contract: As per Section 184(2) of the Act, every director is required to disclose the nature of his concern or interest at the meeting of the Board in which the contract or arrangement is discussed. Such an interested director is generally not allowed to participate in such a meeting. Exception for Private Companies: In the case of a private limited company, interested directors may participate in the Board Meetings after disclosing their interest, provided such participation is permitted by the Articles of Association. Nature of Interest: The interest can be direct or indirect and may relate to any contract or arrangement (or proposed contract or arrangement) entered into or to be entered into with a body corporate in which the director (or director in association with other directors) holds more than two percent shareholding, or is a promoter, manager, Chief Executive Officer of that body corporate, or with a firm or other entity in which such director is a partner, owner, or member. Duty to Disclose: It is the duty of the director giving notice of interest to ensure it is disclosed at the meeting held immediately after the date of the notice. Conclusion: Therefore, it is mandatory for every director to disclose their interest or nature of concern in other entities as per the prescribed timelines and conditions under the Companies Act, 2013.