What is Form MGT-14?

Last Updated at: February 18, 2020
1198
All you need to know about MCA Form MGT 14

What is Form MGT 14?

Types of resolutions

What is the time period for filing the Form MGT 14?

Documents are required to be submitted for MGT 14?

What all details are included in the MGT 14?

What is the penalty charge for delaying MGT 14?

Running a business or company isn’t any cakewalk. To run a business successfully, the right decisions have to be taken at the right time. As such, whether it be a small or well-established business, new decisions and choices have to be made now and then for the successful execution of the plans and strategies. All the companies have to be registered with the government and so, any new changes and decisions that are taken for the company also have to be informed and filed. The decisions so taken are called resolutions. While for the minor resolutions they need not be filed, but for some special and important ones the form has to be filed. This is where the role of MCA Form MGT-14 comes into play.

What is Form MGT-14?

Under the Companies Act 2013, this form was introduced and brought into action, under which certain resolutions had to be mandatorily registered with the Registrar of Companies (ROC). The resolutions so formed are filed with (ROC) after the board meeting is held, and the approval is received from all the members. Before knowing the documents and how MCA form MGT-14 is to be filed, one must know the types of resolutions.

Get free legal advice now

Types of resolutions

There are 3 types of resolutions are these include:

  • Ordinary resolution: Under this, the approval must be given by at least 50% of the board members and a majority of the shareholders pass this type of resolution.
  • Special resolutions: Under this, approval must be given by at least 75% of the board members and are used for special purposes and extraordinary decisions that cannot be taken otherwise.
  • Written resolutions: Under this, approval has to be given by at least 75% of the board members and is signed by all the members/shareholders.

For all the board resolutions, annexure A has to be filed.

Annexure B has to be filed, for the special resolutions.

For the ordinary resolutions, annexure C has to be filed.

The time period for filing the form MGT-14

One approved and decided by the board members, the resolution has to be mandatorily filed with the RoC within 30 days of the decision.

Documents to be submitted with MGT-14

While filling the form, the list of documents that have to be submitted along with it includes the following:

  • A copy of the agreement/resolution so passed regarding which the form is being filed.
  • The explanatory statement, basically a statement containing all the details of the resolution.
  • In case, any article alters or changes the effect on the company, and is by the resolution, then, a copy of the article must also be attached and pasted with the agreement or the resolution.
Details included in the MCA form MGT-14

The content that is included in the form MGT-14 include the following:

  • CIN (Corporate Identification Number)
  • Details of the company including the name, address of the office and email id, and other contact details if required.
  • The details of the document to be registered, that is, the resolution Agreement.
  • Dispatch date of the resolution.
  • Passing date of the resolution.
  • The number of resolutions.
  • Additionally, the details regarding the resolution also have to be provided, which include the purpose, subject matter and the authority under which the resolution is being passed.
  • In case, the company has to be winded up, the details regarding the same must be provided in a detailed manner.

Fees for filing the form MGT-14

Depending on the share capital that the company holds, the fee structure varies accordingly. The fee structure is as follows:

  • Rs.200/document for the share capital less than Rs.1,00,00.
  • Rs.300/document for the share capital between Rs.1,00,000 – 4,99,999.
  • Rs.400/document for the share capital between Rs.4,99,999 – 25,99,999.
  • Rs.500/document for the share capital between Rs.25,00,000 – 99,99,999.
  • Rs.600/document for the share capital Rs.1,00,00,000 and above.

Depending on the number of days by which the registration is delayed, the penalty has to be paid accordingly. If the delay is for up to 30 days, the fees doubles, and similarly more the delay, greater is the penalty that is charged.

Penalty charges for delay

Let us see the penalty charges for the company and the officer:

Penalty charges for the company: In case, the company is unable to file the document (resolution) within 30 days after it has been passed, they are liable to pay a fine of Rs.1,00,000 and Rs.500 for every subsequent day.

Penalty charges for the officer: The officers who are a part of the default, have to pay Rs.50,000 and Rs.500 for every subsequent day.

Click here to download or view the Instruction kit for e-Form MGT-14

Conclusion

It is important to take correct decisions, it is equally important to register and file them through correct legal procedures.

 

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What is Form MGT-14?

1198

What is Form MGT 14?

Types of resolutions

What is the time period for filing the Form MGT 14?

Documents are required to be submitted for MGT 14?

What all details are included in the MGT 14?

What is the penalty charge for delaying MGT 14?

Running a business or company isn’t any cakewalk. To run a business successfully, the right decisions have to be taken at the right time. As such, whether it be a small or well-established business, new decisions and choices have to be made now and then for the successful execution of the plans and strategies. All the companies have to be registered with the government and so, any new changes and decisions that are taken for the company also have to be informed and filed. The decisions so taken are called resolutions. While for the minor resolutions they need not be filed, but for some special and important ones the form has to be filed. This is where the role of MCA Form MGT-14 comes into play.

What is Form MGT-14?

Under the Companies Act 2013, this form was introduced and brought into action, under which certain resolutions had to be mandatorily registered with the Registrar of Companies (ROC). The resolutions so formed are filed with (ROC) after the board meeting is held, and the approval is received from all the members. Before knowing the documents and how MCA form MGT-14 is to be filed, one must know the types of resolutions.

Get free legal advice now

Types of resolutions

There are 3 types of resolutions are these include:

  • Ordinary resolution: Under this, the approval must be given by at least 50% of the board members and a majority of the shareholders pass this type of resolution.
  • Special resolutions: Under this, approval must be given by at least 75% of the board members and are used for special purposes and extraordinary decisions that cannot be taken otherwise.
  • Written resolutions: Under this, approval has to be given by at least 75% of the board members and is signed by all the members/shareholders.

For all the board resolutions, annexure A has to be filed.

Annexure B has to be filed, for the special resolutions.

For the ordinary resolutions, annexure C has to be filed.

The time period for filing the form MGT-14

One approved and decided by the board members, the resolution has to be mandatorily filed with the RoC within 30 days of the decision.

Documents to be submitted with MGT-14

While filling the form, the list of documents that have to be submitted along with it includes the following:

  • A copy of the agreement/resolution so passed regarding which the form is being filed.
  • The explanatory statement, basically a statement containing all the details of the resolution.
  • In case, any article alters or changes the effect on the company, and is by the resolution, then, a copy of the article must also be attached and pasted with the agreement or the resolution.
Details included in the MCA form MGT-14

The content that is included in the form MGT-14 include the following:

  • CIN (Corporate Identification Number)
  • Details of the company including the name, address of the office and email id, and other contact details if required.
  • The details of the document to be registered, that is, the resolution Agreement.
  • Dispatch date of the resolution.
  • Passing date of the resolution.
  • The number of resolutions.
  • Additionally, the details regarding the resolution also have to be provided, which include the purpose, subject matter and the authority under which the resolution is being passed.
  • In case, the company has to be winded up, the details regarding the same must be provided in a detailed manner.

Fees for filing the form MGT-14

Depending on the share capital that the company holds, the fee structure varies accordingly. The fee structure is as follows:

  • Rs.200/document for the share capital less than Rs.1,00,00.
  • Rs.300/document for the share capital between Rs.1,00,000 – 4,99,999.
  • Rs.400/document for the share capital between Rs.4,99,999 – 25,99,999.
  • Rs.500/document for the share capital between Rs.25,00,000 – 99,99,999.
  • Rs.600/document for the share capital Rs.1,00,00,000 and above.

Depending on the number of days by which the registration is delayed, the penalty has to be paid accordingly. If the delay is for up to 30 days, the fees doubles, and similarly more the delay, greater is the penalty that is charged.

Penalty charges for delay

Let us see the penalty charges for the company and the officer:

Penalty charges for the company: In case, the company is unable to file the document (resolution) within 30 days after it has been passed, they are liable to pay a fine of Rs.1,00,000 and Rs.500 for every subsequent day.

Penalty charges for the officer: The officers who are a part of the default, have to pay Rs.50,000 and Rs.500 for every subsequent day.

Click here to download or view the Instruction kit for e-Form MGT-14

Conclusion

It is important to take correct decisions, it is equally important to register and file them through correct legal procedures.

 

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