Where to mentioned details regarding transmission of shares in Form MGT 7A

In Form MGT-7A (which is the Abridged Annual Return used by One Person Companies and Small Companies), details regarding the transmission of shares are reflected in the section concerning "Details of shares/Debentures Transfers since closure date of last financial year."

While the form specifically uses the word "transfers," the reporting of transmission (which is an operation of law, unlike a voluntary transfer) should be disclosed within the same tracking mechanism for changes in shareholding.

Where to Mention the Details

1. Section: "Details of shares/Debentures Transfers": In the MGT-7A Excel/JSON utility, there is a specific section dedicated to reporting changes in shareholding that occurred since the closure of the last financial year.

2. Reporting Mechanism:

   • You must provide the details of the transmission in the designated table, which typically includes the Date of Registration, the Type of Transfer (you may need to categorize it appropriately if a dropdown is provided, or provide a note), the number of shares/units, and the details of the Transferor (the deceased member) and Transferee (the legal heir/nominee).

   • If the list of transmissions/transfers is long (exceeds 10 entries), the form allows you to select "Yes" for the option "Separate sheet attached for details of transfers" or "Details being provided in a CD/Digital Media."

Important Points to Remember

• Transmission vs. Transfer: Unlike a voluntary share transfer, a transmission of shares occurs by operation of law (e.g., due to the death or insolvency of a member). While the reporting structure in the MCA forms often groups these under a common "transfers" heading, ensure that your internal company records (such as the Register of Members in Form MGT-1) clearly distinguish these as "Transmission" entries.

• Supporting Documentation: Ensure you have already:

  • Passed a Board Resolution approving the transmission.

  • Updated the Register of Members (MGT-1).

  • Endorsed the share certificate(s) in favor of the successor.

• Nil Return: If there were no transfers or transmissions during the financial year, ensure the field is marked as "Nil."

Summary:

You should report the transmission of shares in the "Details of shares/Debentures Transfers" section of Form MGT-7A. If the number of such entries exceeds the space provided in the utility, you should prepare a separate attachment or digital media file and select the corresponding option within the form to indicate that an attachment is provided.