On 15th July 2024, the Ministry of Corporate Affairs of the Government of India issued a notification amending the Companies (Management and Administration) Rules, 2014 vide Companies (Management and Administration) Amendment Rules, 2024. This amendment, exercised under the authority conferred by subsections (1) and (2) of section 469 of the Companies Act, 2013, introduces significant changes to enhance the efficiency and transparency of corporate management and administration. One of the key highlights of this amendment is the substitution of Form MGT-6 with a new form, aiming to streamline reporting and compliance processes for companies.
Detailed Analysis
The Companies (Management and Administration) Rules, 2014, set forth regulations for the management and administrative functions of companies in India. These rules cover a wide range of aspects, from the maintenance of registers to the filing of returns and reports.
Key Changes in the Amendment
1. Substitution of Form MGT-6 The most notable change in this amendment is the substitution of the existing Form MGT-6 with a new form. Form MGT-6 pertains to the return to be filed with the Registrar regarding the declaration of beneficial interest in shares. The revised form is designed to provide more detailed and structured information, facilitating better compliance and transparency.
2. Form MGT-6: Detailed Breakdown
- Corporate Information
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- Corporate Identity Number (CIN)
- Name and registered office address of the company
- Email ID of the company
3. Declaration of Beneficial Interest
- Information on the beneficial owner, including their identification details and the nature of their interest in the company’s shares.
- Details of the shares held, voting rights, and any other relevant particulars that establish the beneficial interest.
4. Changes in Beneficial Interest
- Fields for reporting changes in the beneficial interest, including the date of change and updated information on the beneficial owner.
- Provisions for attaching supporting documents to verify the changes reported.
5. Implementation and Compliance
- The new form comes into force from the date of its publication in the Official Gazette, making it imperative for companies to promptly adopt the new form and comply with the updated reporting requirements.
- Companies are required to ensure that all declarations and changes in beneficial interest are accurately reported using the revised Form MGT-6.
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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi the 15th July 2024
G.S.R 403(E).— In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Management and Administration) Rules, 2014, namely:-
1. Short title and commencement. – (1) These rules may be called the Companies (Management and Administration) Amendment Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Management and Administration) Rules, 2014, in annexure, for form number MGT-6, the following form shall be substituted, namely.-
[F. No. 01/34/2013 CL-V (Pt-II)]
(Manoj Pandey)
Additional Secretary to the Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 260(E) dated 31st March, 2014 and lastly amended, vide G.S.R 801(E) dated 27th October, 2023.
