Exemption to Private Companies to file e-Form MGT-14 with ROC in certain matters

• CA Chandan Agarwal's Office

The Companies Act, 2013 (“the New Act”), became effective from 1^st April, 2014. After the commencement of this Act, numerous resolutions are required to be filed in e-form MGT-14 with the Registrar of Companies (“ROC”). Though the requirement to file e-form MGT-14 was applicable to all companies but after coming ample of amendments the list of resolutions for filing of e-form MGT-14 has been reduced to certain extent for certain companies. Private companies got numerous exemptions comparatively Listed/Public companies.

The Ministry of Corporate Affairs (“MCA”) vide its Notification No. GSR 464(E) dated June 5, 2015 granted much awaited relief to corporates by allowing certain exemptions to the Private Companies from the applicability of provisions of the New Act. The said decision was taken in respect of privileges/exemptions enjoyed by the Private Companies under the erstwhile Companies Act, 1956 (‘the Old Act’).

It mainly provides respite to Private Companies for related party transactions among private holding-subsidiaries, freedom to have its own class of capital / voting rights. It has reduced certain procedural periodicities under Section 62 of the New Act and removed certain procedures for accepting deposits from members, certain general meeting compliances for the Private Companies. It has provided relief to private Companies from filing of certain resolutions with ROC. The deposition of Rupees One Lakh by a candidate for private company’s directorship is no more required now. Further, the private company directors have been granted a right of participation in the decision making process subject to disclosure of interest. It released certain private companies from the applicability of provisions of loans to directors etc. under section 185 of the Act and provided freedom of voting to members on Related Party Transactions and removed restrictions with regard to appointment of executive directors by the private companies.

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