Purpose
MGT-7 is an annual return and is filed under the provisions of Companies Act, 2013 in other to give out the details of its shareholders, directors and management.
Thus, transparency and the compliance with the regulations provided herein will preserve and ensure fair competitive environment at the Market place.
Basic Company Information:
The legal name of the company, its registered office address, the Corporate Identification Number Code (CIN) and telephone & electronic mail addresses.
Share Capital and Debentures:
The facts in respect of the shares in the company; the amount of the authorized capital, the issued capital and the paid-up capital all are important.
Information relating to the sundry categories of shares and debentures.
Shareholding Pattern:
Specific details relating to the dispersion of share structure showing the percentage share by individual shareholders.
Directors and Key Managerial Personnel (KMP):
Details of names, addresses of all the directors and KMP’s.
Meetings:
Minutes of the meetings held during the year along with the participants.
Penalties and Offences:
Preparation:
Gain any and all necessary information about the share holding pattern, directors and officers of the company and legal compliance.
Submission:
Certified the form through the MCA portal which is official online interface of Ministry of Corporate Affairs of India.
Filing Fee:
Timeline: MGT-7 must be filed within 60 days from the date of the Annual General Meeting (AGM).
AGM Schedule: The AGM should be held within six months from the end of the financial year (April 1 to March 31), ensuring no more than 15 months between consecutive AGMs.
Financial Year: FY2023/24, which is from 1st April 2023 to 31st March 2024.
AGM Date: September 30, 2024.
Due Date for MGT-7: November 29, 2024 (60 days from September 30).
For the Company:
Fine: INR 10,000/- for failing to file on time.
Additional Charges: INR 100 per day for continued delay after the due date to a maximum of INR 2,00,000/-.
For Officers in Default:
Fine: INR 50,000/-
Therefore, it is recommended to create certain compliance calendar to be able to control such dates.
Schedule periodic checks to make sure all the statutory forms including the MGT-7 are created and filed within due date.
It is very important for regulation purpose of having the Companies Act, 2013 that the MGT-7 form should be submitted. That means that companies ought to follow the set filing requirements and keep the right paperwork to avoid penalty as well as to run efficiency. Additional efficient improvement of compliance and corporate governance can be achieved through the directors’ and officers’ training and awareness programs.
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