Form MGT-14, like its predecessor Form 23, will soon acquire the distinction of becoming the most prominent form one ever uses on MCA portal. With most of the significant resolutions coming under its sweep, this form has the potential to be both a boon and a bane for stakeholders.
The general public would be greatly enhanced as companies would now be required to augment their transparency more than ever with regard to most of their essential decisions as a multitude of resolutions would now be available in the public domain. However, as per proviso to Section 117(3)(g), the copies of the board resolutions filed with this form shall not be available for public inspection as they reveal the internal matters of the company.
On the downside, this form could be a nuisance to the companies and their concerned officers as the penalty of non filing on the company extends to Rs. 25,00,000 and Rs. 5,00,000 on every officer of the company who is in default under Section 117 (2) of Companies Act, 2013.
In MGT-14, copies of resolutions along with explanatory statements annexed to the notice, if any shall be filed with the ROC within 30 days of their passing. All the items specified in S 117(3) and mentioned under Rule 8 of Chapter 12 come under this form’s purview.
Cases where MGT-14 is required to be filed
However, no person shall be entitled under section 399 to inspect or obtain copies of such resolutions. Moreover, private companies are exempt from filing MGT-14 for above board resolutions.