WHAT IS FORM MGT 14?
INTRODUCTION
As Per Companies Act 2013, form MGT-14 was introduced and brought into action, under which certain specific resolutions had to be mandatorily registered with the Registrar of Companies (ROC). As soon as the specified resolutions are presented in front of the board of directors and approved, they have to be notified with the Registrar of Companies under whom the company was registered. Form MGT-14 is a form that is used to appoint a managing director (MD) or a whole-time director (WTD) of a company. It is a mandatory form that must be filed with the Registrar of Companies (ROC) within 30 days of the appointment of the MD or WTD.
The form must be signed by the company secretary of the company and must contain the following information:
- The name and address of the company
- The name and address of the MD or WTD
- The date of appointment of the MD or WTD
- The terms of appointment of the MD or WTD
- The remuneration of the MD or WTD
- The powers and duties of the MD or WTD
Some of the key points about Form MGT-14:
- It is a mandatory form that must be filed with the ROC within 30 days of the appointment of the MD or WTD.
- It must be signed by the company secretary of the company.
- It must contain certain information about the MD or WTD, such as their name, address, date of appointment, terms of appointment, remuneration, and powers and duties.
ADVANTAGES
Legal Compliance: Form MGT-14 helps companies comply with the legal requirements of the Companies Act, 2013. Filing this form is mandatory for specific transactions, resolutions, and agreements.
Transparency: It promotes transparency in the management and administration of a company by requiring the disclosure of important information and documents that may affect the interests of shareholders and stakeholders.
Record-Keeping: Filing Form MGT-14 ensures that important documents and decisions are officially recorded with the Registrar of Companies, providing a legal record for future reference.
Shareholder Protection: It serves as a mechanism for protecting the rights and interests of shareholders by ensuring that significant decisions and transactions are documented and filed with the regulatory authorities.
Legal Evidence: Having a record of documents filed via Form MGT-14 can serve as legal evidence in case of disputes or legal proceedings, helping to establish the validity of certain actions taken by the company.
DISADVANTAGE
Complexity: Filling out Form MGT-14 can be a complex and time-consuming process, particularly for companies with a high volume of transactions or a complicated organizational structure. It may require professional assistance to ensure accuracy and compliance.
Filing Fees: Companies are required to pay filing fees when submitting Form MGT-14, which can add to the cost of compliance.
Strict Timelines: There are strict timelines associated with filing Form MGT-14. Failure to file within the specified time frame can result in penalties, which can be a disadvantage for companies that may face delays in preparing and submitting the required documents.
Public Disclosure: Some information and documents filed via Form MGT-14 are publicly accessible through the RoC, which means that certain business details may become accessible to competitors and other interested parties.
Liability: Incorrect or incomplete filing of Form MGT-14 can result in legal liability for the company and its officers. Therefore, it is essential to ensure the accuracy and completeness of the information provided.
CONCLUSION
Filing MGT 14 with MCA implies that the critical decisions of the company cannot remain undercover. Companies are mandated to share decisions passed through resolutions with the authority. Any disagreement with this requirement shall lure significant fines for the company.
HOW AURIGA ACCOUNTING HELP YOU
Form Preparation: Auriga Accounting or a similar service can assist you in preparing Form MGT-14 accurately. This includes helping you gather the required documents and information, filling out the form correctly, and ensuring that all mandatory fields are completed.
Compliance Guidance: They can provide guidance on the legal requirements and compliance standards associated with Form MGT-14, helping you avoid errors and omissions that could result in penalties or legal issues.
Timely Submission: These services can help you meet the strict deadlines associated with Form MGT-14 filings, ensuring that the form is submitted on time to the Registrar of Companies (RoC).
Documentation: They can assist in organizing and presenting the necessary supporting documents, resolutions, agreements, and other paperwork that needs to be submitted along with Form MGT-14.
Review and Verification: These services typically review the information provided for accuracy and completeness before submission, minimizing the risk of errors.
Filing Fees: They may facilitate the payment of the required filing fees and ensure that the fees are correctly accounted for in the process.
Updates and Notifications: Services like Auriga Accounting may also provide updates on changes in compliance regulations and requirements related to Form MGT-14 to keep your company informed.
Record Keeping: They may offer record-keeping services, ensuring that you have a documented history of all your company’s Form MGT-14 filings.
