Compliances under Companies Act 2013

Compliances under Companies Act 2013

Requirement: Company Secretary with LISTED EXPERIENCE ONLY

You’ve probably come across this in job postings, right?

However is Listing Compliances only compliances?

As Company Secretaries, we deal with so much more.

The Companies Act 2013 has so many important, complex responsibilities that often go unnoticed.

And I believe it’s time we start recognizing the value we bring beyond just listing regulations.

I’ve put together a list of the key compliances and penalties under the Companies Act, 2013. I hope it helps us prove just how much we contribute.

Compliances under Companies Act 2013:

Form name: MGT-7 (Annual Return)

Due Date: Within sixty days from the date of Annual General Meeting /?where no annual general meeting is held in any year within?sixty?days from the date on which the annual general meeting should have been held

Section and Rule: Section 92(4) and Rule 11(1) of the Companies (Management and Administration) Rules, 2014

Applicability: Every company, except a One Person Company and a small company

Declaration: The annual return shall be signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice.

Exceptions: None

Form Name: MGT-7A (Abridged Annual Return)

Due Date: Within 60 days from the date of Annual General Meeting (AGM)

Section and Rule: Section 92(1) and Rule 11 of the Companies (Management and Administration) Rules, 2014

Applicability: One Person Company (OPC) and Small Companies

Declaration: Signed by the Director or Company Secretary, or if no Company Secretary, by a Company Secretary in practice

Exceptions: Only applicable for OPCs and Small Companies

Form Name: MGT-8 (Certificate by a Company Secretary in Practice)

Due Date: Along with the filing of MGT-7

Section and Rule: Section 92(2) and Rule 11(2) of the Companies (Management and Administration) Rules, 2014

Applicability: Listed companies and companies with paid-up share capital of ?10 crore or more, or turnover of ?50 crore or more

Certification: Certified by a Company Secretary in practice

Exceptions: None

Form Name: DIR-3 KYC

Due Date: Annually, on or before 30th September of each year

Section and Rule: Section 153, 154, Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014

Applicability: Every individual who has been allotted a Director Identification Number (DIN) as on 31st March

Certification: No certification required; self-submission by the director

Exceptions: None

Amendment: Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024

Form Name: DPT-3 (Return of Deposits)

Due Date: 30th June of every year

Section and Rule: Section 73, 76 and Rule 16 of Companies (Acceptance of Deposits) Rules, 2014

Applicability: All companies other than government companies

Declaration: Signed by the Director, or Chief executive officer, or Chief Financial Officer or Company Secretary

Exceptions: Government companies are exempt

Form Name: ADT-1 (Appointment of Auditor)

Due Date: Within 15 days from the Annual General Meeting

Section and Rule: Section 139(1) and Rule 4 of the Companies (Audit and Auditors) Rules, 2014

Applicability: Every company, except One Person Company

Declaration: Signed by the director and company secretary

Exceptions: None

Form Name: AOC-4 (Financial Statements) AOC-4, AOC-4 XBRL & FORM AOC-4 CFS

Due Date: Within 30 days from the date of Annual General Meeting

Section and Rule: Section 137 and Rule 12 of the Companies (Accounts) Rules, 2014

Applicability: Every company, except those partially exempted under section 2(40)

Declaration: Signed by the Director director; or manager or CEO or CFO; or Company Secretary

Exceptions: None

Form Name: AOC-4 (OPC) (Filing of Financial Statements for One Person Company)

Due Date: Within 180 days from the end of the financial year

Section and Rule: Section 137(1) and Rule 12 of the Companies (Accounts) Rules, 2014

Applicability: One Person Company (OPC)

Declaration: Signed by the Director

Exceptions: None

Form Name: MSME-1 (Half Yearly Return on Payments to MSMEs)

Due Date: 30th April for the October-March half year, and 31st October for the April-September half year

Section and Rule: Section 405 and Notification S.O. 5622(E), dated 2nd November 2018 and Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019

Applicability: All companies receiving goods or services from micro and small enterprises and whose payment to micro and small enterprise suppliers exceeds 45 days from the date of acceptance or deemed acceptance.

Declaration: Signed by Director or Chief Financial Officer

Exceptions: None

Amendment: Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024.

Form Name: BEN-2 (Return to the Registrar in respect of declaration under Section 90)

Due Date: Within 30 days of receiving a declaration from the Beneficial Owner in Form BEN-1

Section and Rule: Section 90 and Rule 4 of the Companies (Significant Beneficial Owners) Rules, 2018

Applicability: Every company where a Significant Beneficial Owner exists

Declaration: Director/Manager/CFO/ CEO/ Company Secretory/Managing Director

Exceptions: Government companies are exempt

Form Name: MGT-14 (Filing of Resolutions and Agreements)

Due Date: Within 30 days of passing the resolution

Section and Rule: Section 117 and Rule 24 of the Companies (Management and Administration) Rules, 2014

Applicability: Every public company and specified private companies

Declaration: Signed by the Director/ Manager/ Secretary/Company Secretary/CEO/CFO/ IRP/RP/liquidator

Exceptions: Private companies are exempt for certain resolutions

Form Name: CRA-4 (Filing of Cost Audit Report)

Due Date: Within 30 days from the receipt of the cost audit report

Section and Rule: Section 148(6) and Rule 6(6) of Companies (Cost Records and Audit) Rules, 2014

Applicability: Every company covered under the Cost Audit Rules

Declaration: Signed by the Director or Manager or CEO or CFO or Secretary of the company(in case of Indian company) or authorised representative ( in case of Foreign company)

Exceptions: Companies not covered under cost audit requirements

Form Name: IEPF-1 (Statement of amounts credited to Investor Education and Protection Fund)

Due Date: Within 30 days of transferring unpaid/unclaimed dividend to IEPF

Section and Rule: Section 124 and Rule 5(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

Applicability: Every company transferring unpaid or unclaimed dividends and other amounts to IEPF

Exceptions: None

Form Name: IEPF-2 (Statement of unclaimed or unpaid amounts)

Due Date: Annually, within 90 days after the holding of AGM

Section and Rule: Section 124(6) and Rule 5(8) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

Applicability: Every company which has any unpaid or unclaimed amount such as dividends, matured deposits, matured debentures, etc.

Exceptions: None

Form Name: IEPF-3 (Statement of shares and unclaimed dividends to be transferred to IEPF)

Due Date: Within 30 days of transferring shares to the IEPF

Section and Rule: Section 124(6) and Rule 6 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

Applicability: Every company transferring shares to IEPF due to non-claim of dividends for seven consecutive years

Exceptions: None

Form Name: IEPF-4 (Statement of shares transferred to the Investor Education and Protection Fund)

Due Date: Within 30 days of the transfer of shares to IEPF

Section and Rule: Section 124(6) and Rule 6(5) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016

Applicability: Every company transferring shares to the IEPF due to non-claim of dividends for seven consecutive years

Exceptions: None

Form Name: IEPF-5 (Application to claim shares and unpaid dividend from IEPF)

Due Date: On-demand by the shareholder or claimant for refund of shares or dividends

Section and Rule: Section 124(6) and Rule 7(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016

Applicability: Shareholders or claimants applying for the refund of shares or unpaid dividends

Certification: Signed by the claimant and verified by the company

Exceptions: None

Form Name: IEPF-6 (Statement of unclaimed or unpaid amounts and shares)-Dispensed with this requirement

Due Date: Within 30 days of the end of the financial year

Section and Rule: Section 124 and Rule 5(4A) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016

Applicability: Every company which has unclaimed dividends or unpaid shares, submitting a consolidated statement

Exceptions: None

Form Name: IEPF-7 (Statement of amounts credited to IEPF on account of matured deposits, debentures, and interest)

Due Date: Within 30 days of transferring matured deposits, debentures, or interest to IEPF

Section and Rule: Section 125 and Rule 6 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016

Applicability: Every company transferring amounts related to matured deposits, debentures, and interest to IEPF

Exceptions: None

Note: The Form IEPF-3 has been merged with IEPF-4 and IEPF-7 with IEPF-1 along with a change in payment process thereof in MCA Version 3.

Form Name: CSR-2 (Report on Corporate Social Responsibility)

Due Date: Annually, Till Now on or before 31st March of the subsequent financial year

However MCA has not yet extended the due date to 31st March 2025

Section and Rule: Section 135 and Rule 12(1B) of the Companies (Accounts) Rules, 2014

Applicability: Companies with CSR obligations under Section 135 of the Companies Act, 2013

Declaration: Signed by the Chief Financial Officer and a Director

Exceptions: Companies that are not required to constitute a CSR Committee as per Section 135(9)

Form Name: DIR-12 (Particulars of Appointment of Directors and the key managerial personnel and the changes among them)

Due Date: Within 30 days of appointment, resignation, or any other change in particulars

Section and Rule: Section 7(1)(c), 168,170 (2) of the Act and Rule 17 of the Companies (Incorporation) Rules 2014 and 8, 15 & 18 of the Companies (Appointment and Qualification of Directors) Rules, 2014

Applicability: Every company upon the appointment or change of directors and key managerial personnel (KMP)

Declaration: Signed by Director/Manager/Company Secretary/Chief executive officer/Chief Financial Officer/ Promoter Shareholder/Liquidator/IRP/RP

Exceptions: None

Form Name: MR-1 (Return of appointment of managerial personnel)

Due Date: Within 60 days of the appointment of managerial personnel

Section and Rule: Section 196(4) and Rule 3 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Applicability: Companies appointing a Managing Director, Whole-time Director, or Manager

Declaration: Signed by the Company Secretary or Director or CFO or CEO

Exceptions: Government companies private companies are exempt certain conditions.

Form Name: MBP-1 (Notice of Interest by Director)

Due Date: Within 30 days of appointment or the first meeting of the Board in every financial year

Section and Rule: Section 184(1) and Rule 9(1) of the Companies (Meetings of Board and its Powers) Rules, 2014

Applicability: Every director of a company, disclosing their interest in other entities

Declaration: Signed by the Director submitting the notice of interest

Exceptions: None

Compliance: Board Meetings

Due Date: At least four times a year, with a maximum gap of 120 days between two consecutive meetings

Section and Rule: Section 173(1) of the Companies Act, 2013 and Secretarial Standard on Meetings of the Board of Directors (SS-1)

Applicability: All companies, except One Person Companies and small companies

Declaration: Minutes of Board meetings are signed by the Chairman of the meeting or the Chairman of the next meeting

Exceptions: One Person Companies, small companies, dormant companies, and Section 8 companies are required to hold at least two Board meetings in each half of a calendar year

Compliance: Annual General Meeting (AGM)

Due Date: Within six months from the end of the financial year, except for the first AGM which must be held within nine months from the end of the first financial year

Section and Rule: Section 96(1) of the Companies Act, 2013 and Secretarial Standard on General Meetings (SS-2)

Applicability: All companies, except One Person Companies

Declaration:The minutes of the AGM are signed by the Chairman of the meeting

Exceptions: One Person Companies are not required to hold an AGM

Form: PAS 6 (Reconciliation of Share Capital Audit Report)

Due Date: Within 60 days from the conclusion of each half-year (i.e., 30th September and 31st March)

Section and Rule: Rule 9A and 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014

Applicability: Every private company, other than a small company and Unlisted public company

Certification: Certified by a Company Secretary or Chartered Accountant in practice

Exceptions: This rule does not apply to:

This rule shall not apply to an unlisted public company which is:-

(a) a Nidhi;

(b) a Government company or

(c) a wholly owned subsidiary.

2.A private company which is a Government company

Form Name: MGT-4 (Declaration of Beneficial Interest in Shares)

Due Date: Upon acquisition or transfer of beneficial interest in shares

Section and Rule: Section 89(2) and Rule 9(1) of the Companies (Management and Administration) Rules, 2014

Applicability: Every person who acquires or holds beneficial interest in any share of a company

Certification: Signed by the beneficial owner or transferee

Exceptions: None

Form Name: MGT-5 (Declaration by the registered owner of shares who does not hold the beneficial interest)

Due Date: Upon acquisition or transfer of shares by a registered owner

Section and Rule: Section 89(2) and Rule 9(2) of the Companies (Management and Administration) Rules, 2014

Applicability: Every registered owner who holds shares on behalf of a beneficial owner

Certification: Signed by the registered owner of shares

Exceptions: None

Form Name: MGT-6 (Return to the Registrar of Companies in respect of declaration under section 89)

Due Date: Within 30 days from the date of receipt of declaration in Form MGT-4 and MGT-5

Section and Rule: Section 89(6) and Rule 9(3) of the Companies (Management and Administration) Rules, 2014

Applicability: Every company receiving a declaration in Form MGT-4 and MGT-5

Declaration: Signed by the Director or Company Secretary

Exceptions: None

Well If this gives the impression that compliances are expensive lets see Non-Compliance:

Here is the list of forms and penalties under the Companies Act, 2013, along with the relevant section and rule references:

Form Name: PAS-6 (Reconciliation of Share Capital Audit Report)

  • Section and Rule: Section 42 and Rule 9A and 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014
  • Penalties:
  • Company: Fine ranging from ?2 lakh to ?5 lakh.
  • Officer in default: Imprisonment for up to 1 year or fine from ?50,000 to ?1 lakh, or both. penalty for each default of one thousand rupees for each day during which such default continues but not exceeding twenty-five lakh rupees.


Form Name: MGT-4, MGT-5, MGT-6 (Beneficial Ownership Declarations)

  • Section and Rule: Section 89(2) and Rule 9 of the Companies (Management and Administration) Rules, 2014
  • Penalties:
  • Company: Penalty of ?1,000 for each day during which such failure continues, subject to a maximum of ?5 lakh
  • every officer in default: Penalty of ?1,000 for each day during which such failure continues, subject to a maximum of ?2 lakh
  • Registered owner or beneficial owner failing to declare: Fine of ?50,000 and Penalty of ?200 for each day during which such failure continues, subject to a maximum of ?5 lakh


Form Name: MGT-7 (Annual Return) and MGT-7A (Abridged Annual Return for OPC and Small Companies)

  • Section and Rule: Section 92(4) and Rule 11 of the Companies (Management and Administration) Rules, 2014
  • Penalties: Company: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of?? 2 lakh Officer in default: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of??50,000


Form Name: MGT-8 (Certificate by a Company Secretary in Practice)

  • Section and Rule: Section 92(2) and Rule 11(2) of the Companies (Management and Administration) Rules, 2014
  • Penalties:
  • Professional certifying incorrect data: Fine of ? 2 lakh and professional disqualification as per disciplinary action.


Form Name: AOC-4 (Filing of Financial Statements)

  • Section and Rule: Section 137(1) and Rule 12 of the Companies (Accounts) Rules, 2014
  • Penalties:
  • Company: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of?? 2 lakh
  • MD and the?CFO?of the company, if any, and, in the absence of the MD and the?CFO, any other?director?who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the Directors: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of??50,000


Form Name: AOC-4 (OPC) (Filing of Financial Statements for One Person Company)

  • Section and Rule: Section 137(1) and Rule 12 of the Companies (Accounts) Rules, 2014
  • Penalties:
  • Company: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of?? 2 lakh.
  • MD and the?CFO?of the company, if any, and, in the absence of the MD and the?CFO, any other?director?who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the Directors: Penalty of?? 10,000 and in case of continuing failure, with further penalty of ? 100 for each day during which such failure continues, subject to a maximum of??50,000


Form Name: CSR-2 (Report on Corporate Social Responsibility)

  • Section and Rule: Section 135(4) and Rule 12(1B) of the Companies (Accounts) Rules, 2014
  • Penalties:


Form Name: DIR-12 (Appointment or Resignation of Directors)

  • Section and Rule: Sections 7(1) (c), 168 & 170 (2) of The Companies Act, 2013 and rule 17 of the Companies (Incorporation) Rules 2014 and 8, 15 & 18 of the Companies (Appointment and Qualification of Directors) Rules, 2014]
  • Penalties:
  • Company: Fine of ?50,000 and additional fine of ?500 for every day during which the default continues subject to a maximum of three lakh rupees.
  • Officer in default: Fine of ?50,000 and additional fine of ?500 for every day during which the default continues subject to a maximum of one lakh rupees.


Form Name: MBP-1 (Disclosure of Interest by Directors)

  • Section and Rule: Section 184(1) and Rule 9(1) of the Companies (Meetings of Board and its Powers) Rules, 2014
  • Penalties: Director in default: liable to a penalty of one lakh rupees


Form Name: DIR-3 KYC (KYC of Directors)

  • Section and Rule: Section 153 and 154, Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014
  • Penalties: Failure to file: DIN deactivation and a fine of ?5,000 on filing after due date.


Form Name: DPT-3 (Return of Deposits)

  • Section and Rule: Section 73, 76 and Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014
  • Penalties:
  • Company: Fine ranging from ?1 crore or twice the amount of?deposit accepted by the company, whichever is lower to ?10 crore.
  • Officer in default: Imprisonment up to 7 years and fine of ?25 lakh to ?2 crore.


Form Name: ADT-1 (Appointment of Auditor)

  • Section and Rule: Section 139(1) and Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014
  • Penalties:
  • Company: Fine ranging from ?25,000 to ?5 lakh.
  • Officer in default: Fine ranging from ?10,000 to ?1 lakh


Form Name: MSME-1 (Return on Payments to MSMEs)

  • Section and Rule: Section 405 and Notification under MSME Development Act, 2006
  • Penalties:
  • Company: Fine ranging from ?25,000 and in case of continuing failure, with a further penalty of ?1000 for each day after the first during which such failure continues, subject to a maximum of ?3 lakh.
  • Officer in default: Fine ranging from ?25,000 and in case of continuing failure, with a further penalty of ?1000 for each day after the first during which such failure continues, subject to a maximum of ?3 lakh.


Form Name: BEN-2 (Declaration of Beneficial Ownership)

  • Section and Rule: Section 90(4) and Rule 8 of the Companies (Significant Beneficial Ownership) Rules, 2018
  • Penalties:
  • Company : a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day, after the first during which such failure continues, subject to a maximum of five lakh rupees
  • Officer in default: penalty of ?25,000 and in case of continuing failure, with a further penalty of ?200 per day for each day, after the first during which such failure continues, subject to a maximum of ?1 lakh.


Form Name: MGT-14 (Filing of Resolutions)

  • Section and Rule: Section 117(1) and Rule 24 of the Companies (Management and Administration) Rules, 2014
  • Penalties:
  • Company: Minimum: ?10,000. In case the failure continues: ? 100 for each day and Maximum: ? 2 lakh
  • Officer in default: Minimum: ?10,000 In case the failure continues: ?100 for each day Maximum: ?50,000


Form Name: CRA-4 (Filing of Cost Audit Report)

  • Section and Rule: Section 148(6) and Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014
  • Penalties: Company: Fine ranging from ?25,000 to ?5 lakh.
  • Officer in default: Fine ranging from ?10,000 to ?1 lakh


Form Name: IEPF-1, IEPF-2, IEPF-3, IEPF-4, IEPF-6, IEPF-7 (Investor Education and Protection Fund)

  • Section and Rule: Section 125 and various rules under the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016
  • Penalties:
  • Company: Penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of ten lakh rupees ?10,000 to ?5 lakh.
  • Officer in default: Penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.


Side Note:

For Related party Compliances I have already shared an article. In terms of Board meeting and general meetings since that is a whole lot of compliances which itself would run in pages hence that would come in the following weeks!

Note:

?If you are genuinely interested in receiving:

? Amendments in company law

?Amendments in securities laws

?Detailed analysis of latest case laws.

?Comprehensive articles on various corporate secretarial activities

Then you can join our WhatsApp CS Community broadcast group with the link given below:

??https://chat.whatsapp.com/G289z3tB3xF9BrylfSiPJN



With warm regards,

Keep Smiling,

Saeed Shaikh

FOOTNOTES

1.https://www.mca.gov.in


CREDITS:

Thanks to Kalika, Priyanka, Safal, Mrunal and Juhi for helping me learn a lot and taking my silly doubts!

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