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Section 179(3)(c)

Deepti Aggarwal (Assistant Company Secretary) (143 Points)

22 July 2014

Dear All

Plz help me regarding this:-

As per Section 179(3)(c), Board resolution are required to be filed with ROC for issue securities, including debentures...

That means we have to file form MGT-14 in case of allotment by board resolution also..???

Anf if yes, then before filing Form PAS-3 or after filing FOrm PAS-3 ???

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3 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 22 July 2014

You are right as for allotment of securities including shares form MGT.14 is to be filed. Allotment of securities is to be done by passing board resolution. So MGT.14 is to be filed within 30 days of passing board resolution for allotment of securities. You may file it before or after filing PAS-3 as PAS.3 is also to be filed within 30 days of passing board resolution for allotment of securities.

Thanks

Deepti Aggarwal (Assistant Company Secretary) (143 Points)
Replied 22 July 2014

Thanks a lot Mr. Ankur for your reply....!!

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 22 July 2014

Ankurji, I beg to differ. Issue of security and allotment of security are two different activities. What Sec.179(3) requires is filing of BR for issue of securities and not for allotment of securities. Normally sequence of events will be:

- BR for issue of securities and approval of letter of offer

- Getting applications with subscripttion money

- BR for allotment of securities

In this case only first BR for issue of securities will have to be filed with MGT.14.