Form MGT-7 is an essential compliance document that every company registered in India, be it public or private, needs to file annually. This form is filed as a part of the company’s annual returns.
What is Form MGT-7?
Form MGT-7 is a comprehensive document that provides detailed insights into the activities of a company during a financial year. This includes information on its shareholding pattern, changes in directorship, meetings conducted, and various other aspects of the company’s operations.
Who should file Form MGT-7?
Every company registered in India, be it a Private Limited Company, Public Limited Company, One Person Company (OPC), or any other kind of company, is required to file its annual returns using Form MGT-7.
When to file Form MGT-7?
The form needs to be filed within 60 days from the date of the company’s Annual General Meeting (AGM). If the AGM is not held in any year, the form should be filed within 60 days from the date on which the AGM should have been held.
Details required in Form MGT-7:
- Company Details: This includes the Corporate Identification Number (CIN), name, and address of the registered office of the company.
- Shareholding Pattern: Details about the company’s promoters, public shareholding, and changes in shareholding, if any, during the financial year.
- Directorship and Key Managerial Personnel (KMP): Information about the company’s directors, KMPs, and any changes in directorship during the financial year.
- Meetings: Details of Board Meetings and AGMs held during the financial year and attendance details.
- Remuneration of Directors and KMP: Details about the remuneration paid to directors and KMPs.
- Debt Details: Information about the company’s indebtedness, if applicable.
- Other Information: This includes details about members, debenture holders, changes in directorship, and other essential details.
Consequences of Non-filing of Form MGT-7:
Non-filing or delay in filing of Form MGT-7 can lead to penalties for the company and its directors. The company may have to pay a hefty fine, and every officer in default can be penalized as well.
How to file Form MGT-7?
Form MGT-7 is filed electronically through the MCA (Ministry of Corporate Affairs) portal. Once filled, the form is to be signed digitally by a company secretary in practice or by a director of the company. After submission, the form is then checked and approved by the Registrar of Companies (RoC).
Conclusion:
Filing Form MGT-7 is a mandatory requirement for companies registered in India. It ensures transparency and provides shareholders, regulatory authorities, and other stakeholders with a clear view of the company’s activities during a financial year. Companies should ensure timely and accurate filing of Form MGT-7 to avoid penalties and maintain their credibility in the corporate world.
