THE END - MGT-9 - Requirement Series - 377


THE END
MGT-9 - Requirement
Since previous some days many professionals have asked one question to “Whether MGT-9 is required to be preparing for F.y. 2017-18 or not”.

As per CA, 2013 section 134, Companies was required to prepare MGT-9 extract of Annual Return and such MGT-9 was required to file with Directors Report.

However, this provision has been amended by CAA, 2017 w.e.f. 31.7.2018 i.e. as per notification dated 31st July, 2017 provision in relation to MGT-9 has been removed from Section 134 and a new provision I added i.e. “the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed”.

Therefore, one can opine that MGT-9 is not required to prepare by any Company if Directors Report approved in Board Meeting on or after 31st July, 2018.


FIRST: Notification of Section 134 of Amendment Act, 2017

SECOND: Section 134 of Amendment Act, 2017





Note: As per above mentioned two screen shot
         
                    i.            First: Notification of Section 36 of Companies Amendment Act, 2017
                 ii.            Second: Section 36 of Companies Amendment Act, 2017 or can say section 134           of Companies Act, 2013.
Therefore, one can opine that w.e.f. 31st July, 2018
               
                     I.            OPC and Small Company shall prepare directors report as per Rule 8A and rule 8A states “the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed”

           II.            Companies other than OPC and Small Company follow section 134 and section 134 states “the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed”

Note: Company have to give Link of Annual Return “not Extract of Annual Return” Which means, MGT-9 is totally removed from Companies Act, 2013 w.e.f. 31st July, 2018.

Link for Draft Directors Report:

FAQ’s Annual Filing:
http://www.csdiveshgoyal.info/2018/08/faqs-annual-filing-company-law-series-1.html

(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com). Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION


Comments

  1. But the relevant amendment in section 92 is yet to be notified​

    ReplyDelete
  2. Section 92(3) still requires to attach extract of annual return with board report.
    Amendment to 92(3) is yet to be notified.
    My interpretation says, MGT 9 is still in force, till amendment to 92(3) is notified.

    ReplyDelete
    Replies
    1. It has already been notified and even reflects on mca portal e-book of companies act, 2013.

      Delete
    2. And Relavant Provision i.e. section 92(3) still the same as old, so on safer side you need to prepare and enclose the MGT-9 with Board report.

      MCA E-Book is not updated, the same is wrong on the same. We talked to Ranjeet Pandey ji and others regarding this.

      Delete
  3. It is to be noted that the amendment in section 92(3) has not been notified as on date therefore the previous clause i.e An extract of the annual return in such form as may be prescribed shall form part of the Board's report will remain continue it means MGT-9 will be the part of Board report till the date section 92(3) will not be notified, apart from it section 134(3)(a) has been notified therefore we have to follow the new clause "the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed."

    CRUX:-

    1. MGT-9 (EXTRACT OF ANNUAL RETURN) WILL BE THE PART OF BOARD REPORT AS PER UNNOTIFIED SECTION 92(3).

    2. WEBLINK IN THE BOARD REPORT AS PER SECTION 134(3) IS MANDORY TO BE MENTIONED WHERE WE HAVE TO PLACE MGT-9 AT THE WEBSITE OF THE COMPANY .

    ReplyDelete

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