Thursday, August 28, 2014

[aaykarbhavan] Planning for filling MGT14: For small cos & other Cos: How to reduce cost?



Planning for filling MGT14
1) Those companies which h
o
ld its First Board meeting on 30th July(recommended for companies other than small co) can
file MGT 14 by 29th August without late fees.
2
) MGT14 can be filed by 2 October for small Co
, if first board meeting on 3rd sep
{If you meet 
both
 criteria,co is small co}(Turnover<2 crores 
as well as
 Paid Up Capital<50 Lakhs
. Hence, if turnover of co is 3 crores & paid up capital is 2 Lakh, it is not a small co.


Reason:
There are two requirements of Law.Firstly,in respect of holding Board meeting & Secondly,in respect of filling MGT14. First requirement is complied by holding board meeting by 30th July(for small co by 3rd September).Second requirement is to be complied within 30 days of holding board meeting i.e. 29th August. 
Sec 117(1) states that a  copy of every resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be filed with the Registrar within 30 days of the passing or making thereof
 

MGT14 can be filed by 2nd Oct without penalty for small co ,if notification not passed: CA Nitesh More

1) If turnover of Pvt Ltd Co less than 2 crores, such company is small co. 

2)
If paid up capital of Pvt Ltd Co is less than 50 Lakhs, such co is also small co. If you meet
both
 of the criteria , your co is small co.
 
 

3)
However, as per definition of small company, holding or a subsidiary company can never be small company.

4)As per sec 173(5), a One Person Company, small company and dormant company may hold minimum 2 Board meeting in a year in such a way that at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days.


5)However,Board meeting should be held for approval of financial statement etc.
 
by
 3 Sep & file MGT 14 by 2
nd
 October, if notification for exemption is not passed by parliament.
 

6)However, If you have already filed Form DPT4, you have already hold board meeting for authorizing a director to file such form .

For other Pvt Ltd Co:
MGT14 can be filed on 2
9
Aug without penalty,if notification not passed:DRAFT Board Resolution to be passed in First Board meeting:HOW TO REDUCE COST?

1) 
As per New Co Law, gap between two board meetings can not exceeds 120 days
for 
Pvt Ltd co
(other than small Pvt Ltd Co)
.If last board meeting is held on 31st March , next board meeting can be held upto 
30
th July
(April 30 days + May 31 Days + June 30 days + July 29 days = 120 Days)
 & 
MGT 14 can be filed upto 29th August without penalty.


2
)However, If you have already filed Form DPT4, you have already hold board meeting for authorizing a director to file such form .

CA NITESH MORE

DRAFT Board Resolution to be passed in "First Board meeting" is available on our face book Group CA Nitesh More Kolkata, Link of which is,



CL Update :RESOLUTIONS TO BE PASSED TO REDUCE FILLING FEES OF MGT14 of small & medium size companies, if draft exemption is not passed in parliament
1) First board meetings of small & medium size companies should pass resolutions in respect of following (at least), to reduce  cost of filling Form MGT14: 
i) Pass resolution for disclosure of interest,
ii) Approval of 
financial statement and the Board’s report, 
iii) Delegation of power to: 
a)  borrow, 
b) invest 
the funds of the company
c) to grant loans or give guarantee or provide security in respect of loans
iv) Any other resolution , if required from the list below "
Form MGT-14 requires filing for following below mention Resolutions"
Note: if you are required to file DPT4 , a resolution should be passed  authorizing a director to file DPT4. Such approval can be in either First Board meeting or in subsequent board meeting. 
2)
As per New Co Law, gap between two board meetings can not exceeds 120 days.If last board meeting is held on 31st March , next board meeting can be held upto
30
th July
(April 30 days + May 31 Days + June 30 days + July 29 days = 120 Days)
 & 
MGT 14 can be filed upto 2
9
th August without penalty.
3
) Again, MGT14 is requires to be filled in more than
5
0 cases
including resolution for disclosure of interest in first Board
meeting, approval of accounts
,
Boards report,
Delegation of power to
borrow, invest, grant loan etc
. If more than one resolution required to be filled to ROC are passed in first board meeting of this year , cost of filling MGT14 can be reduced.
4) For approval of filling of DPT4 , a board meeting is also required. This can also be approved in first Board meeting.
5) After approval of financial statement which are to be given to auditor, Board takes record of Audited financial statement . As Board only takes record of such financial statement, (Board do not approve audited financial statement) , no resolution is required to be filed to ROC for this. 

CA NITESH MORE

Hello Professional,

Form MGT-14 requires filing for following below mention Resolutions:

1.      Section- 8:                 For a company registered under Section- 8 to convert itself into a company of any other kind or alteration of its Memorandum or Articles

2.       

3.      Section – 12:             Shifting Of Registered Office.

4.      Section-13:                Alteration in MOA.

5.      Section- 14:               Alteration in Article.

6.      Section 13(8):          A company, which has raised money from public through  

       Prospectus and still has any unutilized amount out of the money so raised, shall not  

       Change its objects for which it raised the money through prospectus unless a special

       Resolution is passed by the company.

 

7.      Section 27(1):          A company shall not, at any time, vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution.

 

8.      Section 41A:              company may, after passing a special resolution in its general meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed. (Section still not applicable).

 

9.      Section 48(1):          Where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than three-fourths of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class.

 

10.  Section 54:                Issue of Sweat Equity Shares.

 

11.  Section 62(1) (c):    Preferential allotment of shares.

 

12.  Section 65:                Conversion of Unlimited company into limited company.

 

13.  Section 66(1):          Reduction of Share Capital.

 

14.  Section 67(3) (b):    Special resolution for approving scheme for the purchase of fully-paid shares for the benefit of employees.

 

15.  Section 68(2)(b):     Buy Back of Shares.

 

16.  Section 71(1):          A company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption: Provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at a general meeting.

 

17.  Section 76:                Inviting deposits from person other then members.

 

18.  Section-94:                Keep registers at any other place in India.

 

19.  Section 140(1):        The auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, May appoint more than 15 directors by passing of Special resolution.

 

20.  Section- 149(10):     Re-appointment of Independent Director.

 

21.  Section 165(2):        Subject to the provisions of sub-section (1), the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors.

 

22.  Section- 180:             The Board of Directors of a company shall exercise the following powers only with the consent of the company by a special resolution, namely-

a.       to sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking of the company or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakings.

b.      to invest otherwise in trust securities the amount of compensation received by it as a result of any merger or amalgamation.

c.       to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital

and free reserves, apart from temporary loans obtained from the company’s bankers in the ordinary course of business.

d.      to remit, or give time for the repayment of, any debt due from a director.

 

23. Section- 185:             For approving scheme for giving of loan to MD or WTD.

 

24.  Section- 188:             To enter into related party transaction with the company if paid up capital of company exceed Rs.10/- Crore.

 

25.  Section- 186(3):       Loan& Investment by company exceeding 60% of paid up share capital or 100% of free reserve.         

 

26.  Section- 196:             Appointment of a person as Managerial Personnel if, the age of

Person is exceeding 70 year.

27.  Schedule V:               Remuneration to Managerial personnel if, profits of company

are Inadequate.

28.   Section 248:             Power of registrar for removal name of company.

 

29.  Section 271(1)(b): Special Resolution for winding up of the company by Tribunal.

 

30.  Section 304(b):        Special Resolution for winding up of company

 

AS PER SECTION 179(3):    The Board of Directors of a company shall exercise the following powers on behalf of the company by means of resolutions passed at meetings of the Board, namely:—these resolutions are also necessary to file in MGT-14.

 

31.  To make calls on shareholders in respect of money unpaid on their shares.

32.  To authorize buy-back of securities under section 68.

33.  To issue securities, including debentures, whether in or outside India;

34.  To borrow monies;

35.  To invest the funds of the company;

36.  To grant loans or give guarantee or provide security in respect of loans;

37. To approve financial statement and the Board’s report;

38.  To diversify the business of the company;

39.  To approve amalgamation, merger or reconstruction;

40.  Take over a company or acquire a controlling or substantial stake in another company;

41.  Any other matter which may be prescribed.

 

In addition to the things mention above the following things are shall also require to file with ROC in MGT-14 per Rule 8 of Companies (Meetings of Board and its Powers), Rules 2014-

 

42.  To make political contributions.

43.   To appoint or remove key managerial personnel (KMP)

44.   To take note of appointment(s) or removal(s) of one level below the Key Management Personnel;

45.   To appoint internal auditors and secretarial auditor;

46.  To take note of the disclosure of director’s interest and shareholding;

47.  To buy, sell investments held by the company (other than trade investments), constituting 5%  or more of the paid up share capital and free reserves of the investee company;

48.  To invite or accept or renew public deposits and related matters;

49.  To review or change the terms and conditions of public deposit;

50.  To approve quarterly, half yearly and annual financial statements or financial results as the case may be.

 

 

Regards,

CS Divesh Goyal,Delhi

+91-8130757966


Warm Regards 

"Team" CA.Nitesh  More |  FCA, |

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---------- Forwarded message ----------
From: Divesh Goyal <csdiveshgoyal@gmail.com>
Date: Tue, Jul 15, 2014 at 10:18 AM
Subject: List of Resolution for which MGT-14 require to file
To: Nitesh More <moreassociate@gmail.com>


Dear Sir,

Please find attached "List of Resolution for which MGT-14 require to file".
Kindly circulate it asap and mail also to me.


Regards,
CS Divesh Goyal
Company Secretary










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Warm Regards,
CA Nitesh More
9883157484
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CA Nitesh More
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Proprietor RAMANI ASHISH & ASSOCIATES

Partner | PATEL RAMANI & ASSOCIATES

Chartered Accountants

67/17, Strand Road, Nimtala, Kolkata 700 006

Email: ashish.ramani09@gmail.com

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