Non-filing of MGT 14 for 3 Financial years: MCA imposes penalty on Company and 3 Directors [Read Order]

In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty  was imposed on a private limited company and its directors over the non-filing of E-form MGT-14.

This company has been registered under the Companies Act, 2013, and the authorised capital of the company is Rs. 20 lakhs.

During the inquiry, it was found that the company has not filed an e-form MGT-14 for the year ending 31-03-2018 to 31-03-2020 for the approval of accounts. Thus the adjudicating officer reached the conclusion that the company and its directors have not complied with the provisions of Section 117 of the Companies Act, 2013.

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It is to be noted that the company has not replied within the prescribed time limit of 15 days to the show cause notice, and thus no hearing was fixed on this matter. It was observed that neither the company nor its directors or their representatives furnished a reply to the SCN, it was evident that the company is not maintaining its registered office. The penalty imposed has been clearly given in the order in the table.

Section 117(1) of the Companies Act, 2013 provides 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 thirty days of the passing or making thereof in such manner and with such fees as may be prescribed within the time specified under

section 403:

Provided that the copy every resolution which has the effect of altering the articles and the copy of every agreement referred to in sub-section (3) shall be embodied in or annexed to every copy of the articles issued after the  passing of the resolution or making of the agreement “

This order was issued by Seema Rath, Registrar of Companies & Adjudicating Officer Uttar Pradesh, Kanpur. In this order, the penalty was imposed on both the company and its 4 directors.

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