Mgt-14

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Can anyone tell me if a company purchase a plot for investment purpose. Is any requirement as per companies act 2013 regarding filing of form in ROC?

ROSHAN JAIN

ROSHAN JAIN (Expert)
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17 September 2014 The Board of Directors of a company shall exercise the powers on behalf of the company by means of resolutions passed at meetings of the Board, for invest any fund of the Company. As per section 179(3) if a Company invest any funds of the Company, then e-form MGT-14 have to be file within 30 days of such resolution.

But as per my understanding here investment refers to invest under section 186 of the Companies Act,2013. Section 186 covers following three types of specified transaction entered by a company directly or indirectly:

1. Loan to any person or any body corporate
2.Guarantee or security given in connection with loan to any body corporate or person and
3.Acquisition by way of subscription, purchase or otherwise, the securities of any body corporate.

From the above, my conclusion is there no need to file Form MGT-14.

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