Form no MGT -14 goes under Straight Through Processing (STP)
MCA vide circular no 28/2014 dated 9th July 2014 has provided that for the purpose speedy disposal of eforms at the office of Registrar of Companies, Form no MGT-14 is now shifted under Straight Through Processing (STP), which means that the form will be taken directly on record.
Please take note that MGT-14 filed in case of name approval, change in objects , further issue of share, conversion of company into another, shall not be taken under STP mode.
Fifth Removal of Difficulty Order, 2014
MCA has issued the 5th ROD pursuant to which the definition of the related party has been changed. As per the order, in sub-clause (v) of clause (76) of section 2' for the word "or' the word "and" shall be
substituted.
The definition of related party is re-produced below:
2(76) “related party”, with reference to a company, means—
- a director or his relative;
- a key managerial personnel or his relative;
- a firm, in which a director, manager or his relative is a partner;
- a private company in which a director or manager is a member or director;
- a public company in which a director or manager is a director or holds along with his relatives, more than two per cent. of its paid-up share capital;
- any body corporate whose Board of Directors, Managing Director, or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;
- any person on whose advice, directions or instructions a director or manager is accustomed to act: Provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a professional capacity;
- any company which is—
- a holding, subsidiary or an associate company of such company; or
- a subsidiary of a holding company to which it is also a subsidiary:
- such other person as may be prescribed;
Please take note that MCA has issued a similar ROD last year but due to some reasons , the same was not published in the Official Gazette and it lapsed.