- 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.
For the special resolutions, Annexure B has to be filed,
- 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.
For the ordinary resolutions, Annexure C has to be filed.
One approved and decided by the board members, the resolution has to be mandatory filed with the RoC within 30 days of the decision.
When there is a need to File MGT-14?
MCA form MGT-14 can be filed by any company registered either under the Companies Act, 2013 or under the Companies Act, 1956. Following are the listed events or transactions which requires the filing of MCA form MGT-14 –
- Alteration of the Memorandum of Association (MOA),
- Private Placement in the company,
- Alteration of the Articles of Association (AOA),
- Alteration in the Object Clause of the company,
- In case the company concerned has a un-utilized amount of money raised by way of issuing a prospectus,
- Conversion of a Private Company to a Public Limited Company,
- Conversion of a Public Limited Company to a Private Company,
- Issue further Shares to people (whether or not counting the existing shareholders or employees),
- Issue of further shares to the employees concerned under a scheme of ESOP (employees’ stock option),
- Reclassification of the company’s shares,
- Issuance of the sweat equity shares
- To apply to a tribunal or a court for the winding up of the company
- Issuance of the Global Depository Receipts (GDR) in any foreign country
- Voluntary winding up of a company under section 304,
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.
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.
Following are the steps included in the process of filing MCA Form MGT-14 –
- First and foremost step is to visit the MCA (Ministry of Corporate Affairs) official website www.mca.gov.in
- Now, in the next step, the concerned applicant is required to Login in his or her MCA account by using the credentials provided
- Now, select the option saying “Upload E-forms.”
- After clicking on the option Upload E-forms, the applicant is now required to click on the option saying “Normal Forms” and then click on the option saying “Browse” to upload the saved form MGT-14
- Once the Form MGT-14 is uploaded successfully, then the SRN (Service Request Number) will be generated automatically. The applicant concerned is required to save the allotted SRN in order to make the payment of the form fees.
- Lastly, the form submitted will be processed after the payment of form fees is made.
Depending upon the amount of share capital that a company holds, the fee structure varies accordingly. Following is the prescribed fee structure –
- Rs 200 per document if in case the share capital is less than Rs 1,00,00
- Rs 300 per document if in case the share capital is between Rs 1,00,000 – 4,99,999
- Rs 400 per document if in case the share capital is between Rs 4,99,999 – 25,99,999
- Rs 500 per document if in case the share capital is between Rs 25,00,000 – 99,99,999
- Rs.600 per document if in case the share capital is Rs 1, 00, 00,000 and above.
Further, depending upon the number of days by which the delay is caused in the process of registration, the penalty has to be paid accordingly. Furthermore, if the delay caused is up to thirty days, then the fees doubles, and in the same way, the more the delay, the greater will be the penalty that is charged.
What is the Penalty charged in case of a Delay caused?
Following is the prescribed penalty charged in case of any delay caused – Penalty charged from the company – If in case any company is unable to file the document (resolution) within a period of thirty days after it has been passed, then the company in default will be liable to pay a fine of Rs 1,00,000 and also Rs 500 for every subsequent day.