Mandatory Compliances for Private Limited Companies

 

Mandatory Compliances for Private Limited Companies 

Receipt of MBP-1  

As per Section 184(1) of Company Act 2013 Every Director of the Company in First Meeting of the Board of Director in each Financial Year will disclose his interest in other entities under (Form MBP-1)

Receipt of DIR- 8 

As per Section 164(2) of Company Act 2013 Every Director of the Company in each Financial Year will file with the Company disclosure of non-disqualification.

Receipt of MGT-7

As per Section 92 of Company Act 2013, Every Company will file its E-form: Annual Return within 60 daysof holding MGT-7 Annual General Meeting. Annual Return will be for the period 1 st April to 31st March.

Receipt of AOC-4

As per Section 137 of Company Act 2013, Every Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form.

Following Attachment need to attach along with Form AOC-4

Balance Sheet, Statement of Profit & Loss Account (Including Consolidated Financial Statement), Directors’ Report, Auditors’ Report, Cash Flow Statement and Notice of AGM.

Preparation of Director Report

As per Section 134 of Company Act 2013, Directors’ Report will be prepared by mentioning all the information required for Small Company.

Circulation of Financial Statement 

As per Section 136 of Company Act 2013, Company will send to the members of the Company approved Financial Statement (including consolidated Financial Statement), Cash Flow Statement, Directors’ Report and Auditors’ Report at least 21 clear days before the Annual General Meeting. (Except in case of AGM is called on Shorter Notice)

Preparation of Annual General Meeting

As per Section 136 of Company Act 2013, Every Notice of Annual General Meeting will be prepared SS-II as per Section 101 of Companies Act 2013 and Secretarial Standard – II.

Board Meetings

As Per Section 173 of Company Act 2013 & Secretarial Standard – I, Every Company shall hold a minimum number of FOUR meetings of its Board of Directors every year in such a manner that maximum gap between two meetings should not be more than 120 (One hundred twenty) days. Company should hold at least 1 (one) Board Meeting every quarter of the calendar year.

Receipt of ADT-1

As per Section 139 of Company Act 2013, Every company needs to appoint an Auditor. Auditor will be appointed for the 5 (Five) year and form ADT-1 will be filed for 5-year appointment.

Preparation of Annual Return

As per Section 92 of Company Act 2013, Annual Return of Private Company (Except Small Company) should be signed by Company Secretary in Practice.

If Company fails to file annual forms for a continuous period of 3 years or more then directors become disqualified for appointment in another company and directors turn out to be disqualifying for appointment and appropriate action against the director can be taken.

Please note As per Section 167(1) if a director becomes disqualified then his office vacant as director in all the companies simultaneously vacant.

What is the penalty levy on the directors for non compliance of their duties?

As it is the duty of the directors of the company to act in the best interest of the Company, shareholders etc. It is the duty of the directors to follow and comply with the provisions of Companies Act and other legal compliance.

Consequently, one can opine that, if a director fails to comply with his duties then he is liable for penalty u/s 166(7) i.e. ‘fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.