Company Faces Penalty for Non-Filing Form MGT-14 for approving financial statements

The Registrar of Companies (ROC), Kanpur, has issued a penalty order under section 454 of the Companies Act against a company named Lokvikas Benefit Nidhi Ltd for not filing Form MGT-14, which is mandated under the Companies Act.

During the inquiry conducted under section 206(4) of the Companies Act, 2013, the inquiry officer found that the company has failed to file Form MGT 14 for the years ending on 31.03.2018 to 31.03.2021 for approval of accounts.

This action led to the violation of section 117(1) read with 179(3)(g) of the Companies Act, which requires the public companies to file Board Resolutions in Form MGT-14 for approving the financial statements, Board reports, and other key matters within 30 days. The company was issued a show-cause notice, which remained unanswered.

Since the company did not comply with Section 117(1) read with 179(3)(g) of the Companies Act, 2013, the ROC slapped a penalty of Rs 2,00,000 on Lokvikas Benefit Nidhi Ltd and Rs 50,000 each on its three directors. The directors were ordered to pay their penalty from their personal sources. The ROC also directed them to correct the default and pay the penalty amount within 90 days through the MCA Portal.