{"id":40832,"date":"2022-03-04T11:41:38","date_gmt":"2022-03-04T06:11:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=40832"},"modified":"2022-03-04T11:42:12","modified_gmt":"2022-03-04T06:12:12","slug":"mgt-14-form","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/mgt-14-form\/","title":{"rendered":"MGT 14 form: Everything You Need to Know"},"content":{"rendered":"\n<p class=\"has-drop-cap\">MGT form was introduced to file certain\nresolutions with RoC. Such resolutions usually find their way to MGT 14 after\ngetting approval of company\u2019s members in the meeting. This write-up pens down\nthe resolutions to be filed via MGT 14 form. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Categories_of_Filing_Resolutions\" >Categories of Filing Resolutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Annexure_A_%E2%80%93_Board_Resolution\" >Annexure A \u2013 Board Resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Annexure_B_%E2%80%93_Special_Resolution\" >Annexure B \u2013 Special Resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Annexure_C_%E2%80%93_Ordinary_Resolutions\" >Annexure C \u2013 Ordinary Resolutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Time_Frame_for_filing_MGT_14_form\" >Time Frame for filing MGT 14 form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Penalties_for_delay_filing_of_MGT_14_Form\" >Penalties for delay filing of MGT 14 Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Consequences_for_non-filing_of_MGT-14_within_300_days_from_passing_of_resolution\" >Consequences for non-filing of MGT-14 within 300 days from passing of\nresolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/mgt-14-form\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Categories_of_Filing_Resolutions\"><\/span>Categories of Filing Resolutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies are obligated to file following\ncategories of resolution via MGT 14 form: <\/p>\n\n\n\n<ul><li>Board\nResolutions<\/li><li>Special\nresolutions<\/li><li>Ordinary\nResolutions<\/li><\/ul>\n\n\n\n<p>A board resolution is filed in Annexure\nA. Similarly; a special resolution is filed in Annexure B &amp; the ordinary\nresolutions in Annexure C.<\/p>\n\n\n\n<p>Let us know more about them in the\nfollowing sections. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annexure_A_%E2%80%93_Board_Resolution\"><\/span>Annexure A \u2013 Board Resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Annexure A must be filed by every incorporated company other than a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>private limited company<\/strong><\/a>. Private limited entities acting as subsidiaries of public limited companies must comply with this requirement. <\/p>\n\n\n\n<p>The list below encloses the type of board\nresolutions that should be filed in MGT 14 form: <\/p>\n\n\n\n<ul><li>To\nissue securities debentures, either domestically or abroad. It&#8217;s worth noting\nthat in the case of shares, the issuance of security refers to the issue of a\nLetter of Offer. <\/li><li>To\nborrow funds from any identified sources, including a director. <\/li><li>To\ninvest the company&#8217;s funds (also comply with norms of Section 186)<\/li><li>To\nissue loans or facilitate guarantees or security concerning loans. (Also comply\nwith norms of Section 186)<\/li><li>To\nendorse the Board&#8217;s report and financial statement <\/li><li>To\nAppoint Secretarial Auditor.<\/li><li>To\nappoint internal auditors.<\/li><li>To\nappoint or remove top management personnel. <\/li><li>To\nmake political contributions.<\/li><li>To\ntake decisions for shareholders relating to the sum outstanding on their\nshares.<\/li><li>To\nsanction buyback of securities u\/s 68.<\/li><li>To\nexpand the company&#8217;s business<\/li><li>To\nendorse Amalgamation, Reconstruction or Merger. <\/li><li>Take\nover a company or acquire a controlling or gain a stake in another company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annexure_B_%E2%80%93_Special_Resolution\"><\/span>Annexure B \u2013 Special Resolution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Annexure B seeks filing of the following\nspecial resolutions; <\/p>\n\n\n\n<p>1. For companies incorporated u\/s 8 to\nconvert into another type of company or alter its AOA and MOA. <\/p>\n\n\n\n<p>2. <a href=\"https:\/\/corpbiz.io\/change-in-registered-office\"><strong>Change of the company&#8217;s registered office<\/strong><\/a> located in the same state, but outside the local vicinity of the location where it is presently situated. <\/p>\n\n\n\n<p>3. Change a company&#8217;s registered office\nfrom the jurisdiction of one Registrar to another in the same state. <\/p>\n\n\n\n<p>4. Amendment of Articles of privately\nheld entity to entrench any provisions. All the members must approve this. <\/p>\n\n\n\n<p>5. Change in the company&#8217;s name to be\napproved via a special resolution. <\/p>\n\n\n\n<p>6. If a company has procured a\npublic-based fund via issuance of a prospectus, and the fund so procured\nremains unused, the company is not liable to alter the object against which the\nfund was raised, except by passing a special resolution. <\/p>\n\n\n\n<p>7. A company is not allowed to alter the\ncontract&#8217;s terms referred to in an object or prospectus for which the\nprospectus was issued, except with the consent of the competent authority. <\/p>\n\n\n\n<p>8. A company is liable to pass a special\nresolution via general meeting issue depository receipts in any overseas nation\nas per the pertinent conditions<\/p>\n\n\n\n<p>9. If the company&#8217;s share capital is\nclassified into many classes of shares, the rights available to the shares of\nany class may be modified with the writ permission of the concerned\nshareholders; or via a special resolution.<\/p>\n\n\n\n<p>10. Private offer of companies requires\nthe company&#8217;s permission via a special resolution. <\/p>\n\n\n\n<p>11. Issuance of &#8216;Sweat Equity\nShares&#8221;.<\/p>\n\n\n\n<p>12. Reduction of share capital.<\/p>\n\n\n\n<p>13. Special resolution for scheme\nendorsement for the purchase of fully-paid shares for the growth of the\nemployees. <\/p>\n\n\n\n<p>14. Buyback of shares.<\/p>\n\n\n\n<p>15. A company can issue debenture along\nwith an alternative of converting debentures into shares, either partly or\nwholly during the redemption phase, on the conditions that the operation is\napproved by a special resolution passed in the general meeting. <\/p>\n\n\n\n<p>16. Maintain registers at any other\naddress. <\/p>\n\n\n\n<p>17. Re-appointment of Autonomous\nDirector. <\/p>\n\n\n\n<p>18. The company&#8217;s members have the right\nto specify any lesser no. of entities in which the company&#8217;s directors may\nserve as directors. The specification can only be done post the approval via a\nspecial resolution.<\/p>\n\n\n\n<p>19. To sell, lease, or dispose of the\ncompany&#8217;s undertakings, wholly or partly. <\/p>\n\n\n\n<p>20. To invest the compensations\naccessible to the company owing to amalgamation or merger in trust securities.<\/p>\n\n\n\n<p>21. To borrow funds, where the\nprospective borrowable sum and the money previously borrowed surpasses the\ntotal of paid-up share capital &amp; free reserves, except for the temporary\nloans secured via the company&#8217;s banker. <\/p>\n\n\n\n<p>22. To remit or confer time for the\ndebt&#8217;s repayment owed by the director<\/p>\n\n\n\n<p>23. To sanction scheme for facilitating\nloans to MD or WTD<\/p>\n\n\n\n<p>24. Loan &amp; investment by the company\nwhich is higher than 60 per cent of paid-up share or 100 per cent of free\nreserve <\/p>\n\n\n\n<p>25. Recruitment of a candidate as a\nmanager, given that his\/her age is above seventy years. <\/p>\n\n\n\n<p>26. Remuneration to managerial personnel\nin case of inadequate profits<\/p>\n\n\n\n<p>27. Special resolution relating to the\nclosure of the company by Tribunal<\/p>\n\n\n\n<p>28. Special resolution for closure of the\ncompany.<\/p>\n\n\n\n<p>29. Conversion of a private ltd co into a\nOne Person Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annexure_C_%E2%80%93_Ordinary_Resolutions\"><\/span>Annexure C \u2013 Ordinary Resolutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>This annexure seeks inclusion of the\nfollowing ordinary resolutions:<\/em><\/strong><\/p>\n\n\n\n<p>1. Name change as per the Registrar&#8217;s\ndiscretion if the application for name reservation was applied by utilizing\ninvalid information<\/p>\n\n\n\n<p>2. Name change as per the Central\nGovernment&#8217;s discretion. <\/p>\n\n\n\n<p>3. Issue of equity shares under\ndifferential rights require to be supported by an ordinary resolution<\/p>\n\n\n\n<p>4. A company is permitted to escalate its\ncapital, or on the contrary, escalate or consolidate its capital, or sub-divide\nor revoke shares which have not been acquired, provided that such action is\nsupported by its Articles. <\/p>\n\n\n\n<p>5. A private company cannot offer shares\nto employees under the employee&#8217;s stock option scheme, except on the\nshareholders&#8217; consent via a special resolution. <\/p>\n\n\n\n<p>6. To transact the consideration relating\nto financial statements and the BOD report, auditor report, dividends\ndeclaration, fulfilling directorship&#8217;s position vacated due to completion of\nservice tenure, and determining the auditors&#8217; remuneration in the AGM under a\nspecial resolution.<\/p>\n\n\n\n<p>7. Consent of general meeting for the\nissuance of bonus shares. <\/p>\n\n\n\n<p>8. Consent of general meeting for\nadvocating deposits from members.<\/p>\n\n\n\n<p>9. Auditor(s) appointment <\/p>\n\n\n\n<p>10. Appointment of branch auditors.<\/p>\n\n\n\n<p>11. Appointment of the autonomous\ndirector.<\/p>\n\n\n\n<p>12. Appointment of a director via small\nshareholders.<\/p>\n\n\n\n<p>13. Appointment of directors at the first\ngeneral meeting or on the proposal of an individual with a deposit of Rs 1,\n00,000.<\/p>\n\n\n\n<p>14. Cost auditor&#8217;s remuneration shall\ncome to effect via an ordinary resolution at the general meeting.<\/p>\n\n\n\n<p>15. Ordinary resolution for drawing a\ncontract with any third-party companies with underlying paid-up capital or\ntransactions that surpass the prescribed amount.<\/p>\n\n\n\n<p>16. To mention any transactions which is\nnon-monetary wherein the company&#8217;s directors or subsidiary or associate company\nare involved<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time_Frame_for_filing_MGT_14_form\"><\/span>Time Frame for filing MGT 14 form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MGT 14 form should be filed with the\nRegistrar of Company within thirty days from the date of the resolution or\nagreement&#8217;s formulation. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_for_delay_filing_of_MGT_14_Form\"><\/span>Penalties for delay filing of MGT 14 Form <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Failure to submit the resolution under sub-section (1) of section 117 prior to the expiration of the duration cited under Section 403 shall attract the following penalties.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Defaulting Party<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Penalty<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Company\n  <\/td><td>\n  Minimum: Rs 1,00,000 towards the\n  failure remains post to the first one: Rs 500 per day Maximum: Rs 25 lakh\n  <\/td><\/tr><tr><td>\n  Every Officer in Default (Including the\n  Liquidator of the Company)\n  <\/td><td>\n  Minimum: Rs 50,000 towards the failure prevail\n  posts to the first one: Rs 500 per day &nbsp;Maximum: Rs 5 lakh\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_for_non-filing_of_MGT-14_within_300_days_from_passing_of_resolution\"><\/span>Consequences for non-filing of MGT-14 within 300 days from passing of\nresolution <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In such a scenario, the company cannot file MGT-14 form.\u00a0 It\u2019s because this form seeks details of SRN of INC-28 and the same can be filed only after receiving a condonation order. \u00a0It\u2019s noteworthy that the <strong>Ministry of Corporate Affairs<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/home.html\"><strong>[1]<\/strong><\/a><\/sup> holds the power of condonation. <\/p>\n\n\n\n<p><strong><em><br>\nSteps to be followed by concerned company for condonation of delay<\/em><\/strong><\/p>\n\n\n\n<ol><li>File CG-1 with MCA requesting condonation\nin delay<\/li><li>MCA shall set out a fine in the\ncondonation order and intimate the same with the applicant<\/li><li>Upon receiving the order and submitting\nthe fine, the company shall file a order\u2019s copy along with the penalty receipt\nvia form INC-28 with ROC.<\/li><li>The company shall then file MGT 14 by\nenclosing SRN of INC-28<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> Filing MGT 14 with MCA implies that the critical decisions of the company cannot remain undercover.\u00a0 Companies are mandated to share decisions passed through resolutions with the authority. Any disagreement with this requirement shall lure significant fines for the company.\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/register-of-members-under-the-companies-act-2013\/\">Register of Members under the Companies Act, 2013\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MGT form was introduced to file certain resolutions with RoC. Such resolutions usually find their way to MGT 14 after getting approval of company\u2019s members in the meeting. This write-up pens down the resolutions to be filed via MGT 14 form. Categories of Filing Resolutions Companies are obligated to file following categories of resolution via [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":40837,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2163],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7790,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40832"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=40832"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40832\/revisions"}],"predecessor-version":[{"id":40851,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40832\/revisions\/40851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/40837"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=40832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=40832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=40832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}