MCA clarifies on e-filing of MGT-14

Subsequent to this clarification, Corporate can proceed with any school of thought and stay assured of the form MGT-14 getting approved.

The Ministry of Corporate Affairs (MCA) recently issued clarifications on compliance filings regarding resolutions and agreements for companies. There had been many confusions stemming from the new Companies Act which was passed in 2013. Since the new government took over, the MCA has been issuing various Circulars, notifications and removal of difficulty orders to the 2013 law. The latest one being the decision to approve e-Form MGT-14 through Straight Through Process (STP) mode, except in case of certain matters, in order to ensure timely disposal of e-Forms.

MCA vide General Circular No 28/2014 dated 9 July 2014 issued a clarification that MGT-14 filed for purposes specified under Section 117 of the Tandoor Manufacturer Companies Act, 2013 (Act, 2013) will be processed and taken on record using the STP mode with effect from 21 July 2014. However, MGT-14 filed for matters viz. Change of Name, Change of Object, Resolution for further issue of capital and Conversion of companies will be taken on record post the same is approved by concerned Registrar of Companies (RoC) official.

As we all are aware that Section 117 of Act, 2013 mandates filing of Form MGT-14 for various matters, which were already covered under Section 192 of the Companies Act, 1956. However, Section 117 additionally covers matters transacted under Section 179 (3) of Act, 2013 which is a list of 19 items. This step from the MCA for clearing the form filed for such matters through STP will provide relief to Companies, as one need not worry about the approval of the forms filed.

Additionally, Companies in certain states were facing lot of difficulty in getting Form MGT-14 approved, especially the ones which were filed for taking note of disclosure of director’s interest and shareholding under Section 179 (3) (k) read with Rule 8 (5) of Companies (Meetings of Board and its Powers) Rules, 2014. One school of thought mandated attaching Form MBP-1 along with MGT-14 while another school of thought allowed attaching of only the copy of the Board resolution.

Subsequent to this clarification, Corporate can proceed with any school of thought and stay assured of the form MGT-14 getting approved. While this will not reduce the compliance burden of the secretarial team but will surely provide some relief.

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