Filing of Form MGT 14 : Loan from Directors

This query is : Resolved

Sindhu Santhosh (Querist)
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29 December 2023 A private limited company ( small company ) accepting loans from directors from his own source is treated as exempted deposit. The provisions of Section 117 of the Act state filing requirements of particular resolutions and agreements with the ROC in MGT 14.1.In case of private company – clause (g) of Sub-section 3 of Section 117 shall not apply Notification No. GSR 464(E) dated June 5, 2015.,ie, resolutions passed in pursuance of sub-section (3) of section 179. Borrowing monies are included in the same. So my query is whether MGT 14 is required to be filed if the loan amount exceeds the limit (paid up capital + free reserves).

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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14 January 2024 As per this notice, we have to file if it exceeds 100% of paid up and free reserves.
https://www.mca.gov.in/Ministry/pdf/Exemptions_to_private_companies_05062015.pdf