RESOLUTIONS TO BE PASSED TO REDUCE FILLING FEES OF MGT14 of small & medium size companies, if draft exemption is not passed in parliament
1) First board meetings of small & medium size companies should pass resolutions in respect of following (at least), to reduce cost of filling Form MGT14:
i) Pass resolution for disclosure of interest,
ii) Approval of financial statement and the Board’s report,
iii) Delegation of power to:
b) invest the funds of the company
c) to grant loans or give guarantee or provide security in respect of loans,
iv) Any other resolution , if required from the list below “
Form MGT-14 requires filing for following below mention Resolutions”
Note: if you are required to file DPT4 , a resolution should be passed authorizing a director to file DPT4. Such approval can be in either First Board meeting or in subsequent board meeting.
2) As per New Co Law, gap between two board meetings can not exceeds 120 days. If last board meeting is held on31st March, next board meeting can be held upto 30th July (April 30days +May 31Days +June 30days + July 29 days = 120 Days) & MGT 14 can be filed upto 29th August without penalty.
3) Again, MGT14 is requires to be filled in more than 50 cases including resolution for disclosure of interest in first Board meeting, approval of accounts,Boards report, Delegation of power to borrow, invest, grant loan etc. If more than one resolution required to be filled to ROC are passed in first board meeting of this year , cost of filling MGT14 can be reduced.
4) For approval of filling of DPT4 , a board meeting is also required. This can also be approved in first Board meeting.
5) After approval of financial statement which are to be given to auditor, Board takes record of Audited financial statement . As Board only takes record of such financial statement, (Board do not approve audited financial statement) , no resolution is required to be filed to ROC for this.
CA NITESH MORE