Introduction
Every company registered in India, be it a private limited company, a public company, or an OPC, is required to file Annual returns; the forms AOC-4 and MGT-7 are used to file these returns with the MCA. In this article, we will be discussing the form MGT-7 in-depth.
What are Forms MGT-7 & 7A?
Companies Act, 2013, requires every company to file annual returns; the forms MGT-7 and MGT-7A are filed by companies as a part of their annual compliance requirements. These forms reflect every company’s specific information as it stands at the close of the financial year. The kind of information contained in the forms MGT-7 and MGT-7A are: information of a company relating to its share capital, indebtedness, directors, shareholders, changes in directorships/ownership, etcetera.
What is the due date for the form?
Generally, the due date for filing the forms is the 29th of November of every year. This date is calculated on the basis that MGT-7 and MGT-7A need to be filed within 60 days from the annual general meeting (AGM) of a company, and the due date for conducting an AGM for companies is on or before 30th September of every year.
What is the purpose of Forms MGT-7 and MGT-7A?
These forms let the MCA stay updated about the annual returns of every company registered in India. It lets MCA stay in the loop about the financial wellness of the companies and if there are any major changes made within it.
Where is the form available?
MGT- 7 form is available online for download on the Company Forms Download page on the MCA website.
Details to be filled in the forms MGT-7 & MGT-7A
The MGT-7 & MGT-7A forms require the following details:
Details of the company’s registered office, its principal business activities, and its holding, subsidiary, and associate companies
All the information regarding the company’s shareholding pattern and securities, such as its shares, debentures, etcetera.
Particulars of the company’s Indebtedness.
Information regarding the members and debenture-holders of the company and of any alterations connected to them that have occurred since the end of the previous financial year.
Information regarding the promoters, directors, and key managerial personnel of the company and of any alterations connected to them that have occurred since the end of the previous financial year.
Details of the various meetings of the members, a certain class, the board, and its committees, that have taken place in the financial year. The details should also include attendance details of the meetings.
The remuneration paid by the company to the directors and key managerial personnel.
Details of any penalty or punishment that was/is imposed on the company, its directors, or officers in the current financial year, including details of any compounding of offenses and appeals against the penalty.
Information regarding matters that are related to certification of compliance and all disclosures as prescribed by law.
Any other matter as specified in the form.
Documents needed for forms MGT-7 & MGT-7A
The following documents need to be attached to the forms MGT-7 & MGT-7A:
A list of all the shareholders of the company as of the financial year’s end.
A list of all the debenture holders of the company.
A Copy of form MGT-8, if applicable
An approval letter allowing for extension of AGM case the AGM work held past the due date (30th September).
Any other optional attachment as and if required by the form.
Penalty for non/late filing
Non-filing or late filing of the forms carries a penalty of INR 100 per day with no upper limit. Additionally, the MCA can also charge some other penalties at its discretion.
Consequences of Not Filing E-Form MGT-7A
A penalty is imposed for not filing the e-form MGT-7A. The penalty for not filing the annual return by OPCs and small companies, i.e. e-form MGT-7A, is Rs.100 per day of default. Hence, OPCs and small companies should ensure that the annual return is filed before the due date.