1. What is Form MGT-7?
While Form AOC-4 discloses the financial books of an entity, Form MGT-7 captures its legal, ownership, and governance DNA. Filed under Section 92 of the Companies Act, 2013, it provides an official annual snapshot of who truly owns, directs, and controls the company.
2. Crucial Disclosures Inside MGT-7
Shareholding Pattern & Significant Beneficial Ownership
Names, PANs, and equity stakes of individual and institutional promoters. Reveals indirect control structures under the SBO rules (Section 90).
Board & Committee Meetings Record
Details the exact dates of board meetings, attendance percentages of independent and executive directors, and compliance with the 120-day maximum meeting gap mandate.
Director & Key Managerial Personnel (KMP) Remuneration
Exact salary, commission, and perks drawn by promoters and whole-time directors relative to net profits under Section 197.
Indebtedness & Borrowing History
Total secured and unsecured loans outstanding at fiscal year-end, including inter-corporate deposits.
3. Late Filing Penalties
Failure to submit Form MGT-7 within the statutory 60-day window triggers an ongoing late fee of ₹100 per day of delay under Section 92(5). Prolonged non-filing for two consecutive years marks the company as Inactive and initiates ROC show-cause strike-off proceedings under Section 248.