MCA Imposes Penalties for Not Filing MGT-14 on a Company

Introduction 

Recently MCA imposes heavy penalties on a private limited company for not filing MGT-14 form. It was noticed that the company had not filed the form for about 6 years. MGT-14 is a form which is used by companies to file with the Registrar of Companies (RoC) to report special resolutions and agreements passed in Meetings. Check out this blog to know the detailed penalty structure levied in case of failure of MGT-14 Form along with the due date for MGT-14 Form filing. 

MCA Imposes ₹4 lakh Penalty

Recently, MCA (Ministry of Corporate Affairs) imposes ₹4 lakh as penalty on a Private Limited Company. As the company and its directors did not file the E-Form MGT-14 for more than 6 years. MGT-14 is an e-form which requires the registration of specific resolutions and agreements with the Registrar of Companies. As per the report, this company was registered under the Companies Act, 2013 and its authorised capital was around ₹20 lakh. 

Seema Rath, registrar of companies, Uttar Pradesh, Kanpur issued an order against the company after not getting any reply through the company on prescribing the time limit of 15 days to the show cause notice. Also, the order included the instruction to pay the penalty individually via e-payment on the MCA website under ‘Pay Miscellaneous Fees’ within 90 days.

Also, at the time of inquiry, it was found that the company has not filed mgt-14 form for the year ending 31st March 2015 to 31st March 2021 for the approval of accounts. In this case, there was an error from the side of the company and its directors as they did not file MGT-14 form and did not update the department about the changes within the organisation. 

MGT-14 Form

MGT-14 Form is used when a company conducts various meetings during a year. These meetings include meetings of the Board of Directors, Shareholders or Creditors, to pass any special resolution. MGT 14 must be filed within 30 days of the resolution’s passing or the agreement’s execution. 

Due Date for MGT-14 Filing 

The company must file these special resolutions and agreements in form MGT-14 within 30 days after the resolution being passed or the agreement being entered into, as per the Section 117(1). 

Penalty Under Section 117 

Under Section 117 if the agreement or these resolution face any failure or are not filed within 30 days of passing, then there are certain penalties which can create a large impact. Following are the detailed penalties which can be levied under section 117: 

Conclusion 

MGT-14 form is a crucial document needed to be filed within 30 days with the Registrar of Companies after reporting any special resolution or passing any agreement in a meeting. As per recent report MCA imposes ₹4 lakh penalty on a private limited company as it was found that the company has not filed mgt-14 form for the year ending 31st March 2015 to 31st March 2021 for the approval of accounts. It is advised to file MGT-14 Form after making any special resolution with RoC before the due date to avoid heavy penalties. 

Frequently Asked Questions (FAQs) 

1) What is the MGT-14 form used for?

MGT-14 form mainly used for documenting significant corporate decisions and actions taken during meetings of the company’s Board of Directors, Shareholders, or Creditors.

2) Is MGT-14 required for resignation of the company secretary?

Yes, it is required to file MGT-14 form to RoC in case of cessation. 

3) Is MGT-14 mandatory?

Yes, MGT-14 Form is a mandatory compliance and in case of any failure, heavy penalties will be imposed. 

4) Is MGT 14 required for change of registered office?

Yes, MGT-14 form is only required in case of Shifting the Registered Office outside the City or State.