{"id":1423,"date":"2021-01-18T11:56:04","date_gmt":"2021-01-18T11:56:04","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1423"},"modified":"2021-01-18T11:56:06","modified_gmt":"2021-01-18T11:56:06","slug":"amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/","title":{"rendered":"Amendment in Form SH-7 by the Ministry of Corporate Affairs"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the MCA (Ministry of Corporate\nAffairs) has used its powers given under the provision of section 143 (11) of\nthe Companies Act 2013 and issued a Notification No. G.S.R. 794(E), dated 24.12.2020,\nconcerning the Amendments made by it in Form SH-7. Further, the said amendment\nwas made under the Companies (Share Capital and Debenture) Rules 2014.<\/p>\n\n\n\n<p>Moreover, from now onwards, these rules\nwill be known as the Companies (Share Capital and Debenture) Second Amendment\nRules 2020 and will come into force from the date of its publication in the\nOfficial Gazette.<\/p>\n\n\n\n<p>In this blog, we will talk about the\nconcept and the amendment in Form SH-7 made by the MCA. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a7819dfc7f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a7819dfc7f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Concept_of_MCA_Form_SH-7\" title=\"Concept of MCA Form SH-7\">Concept of MCA Form SH-7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Governing_Laws_for_Form_SH_7\" title=\"Governing Laws for Form SH 7\">Governing Laws for Form SH 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Situations_that_Require_Filing_of_MCA_Form_SH_7\" title=\"Situations that Require Filing of\nMCA Form SH 7\">Situations that Require Filing of\nMCA Form SH 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Amendment_in_Form_SH-7\" title=\"Amendment in Form SH-7\">Amendment in Form SH-7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/amendment-in-form-sh-7-by-the-ministry-of-corporate-affairs\/#Copy_of_the_Official_Notification\" title=\"Copy of the Official Notification\">Copy of the Official Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_MCA_Form_SH-7\"><\/span>Concept of MCA Form SH-7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term MCA Form SH-7 denotes a\nstatutory form, which a company needs to file within 30 days from the\nalteration made in the Authorised Capital. Further, such a form is filed with\nthe Registrar of Companies (ROC), together with the fees prescribed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Governing_Laws_for_Form_SH_7\"><\/span>Governing Laws for Form SH 7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ngoverning laws for MCA Form SH 7 are as follows:<\/p>\n\n\n\n<ol><li>Section\n64 of the Companies Act 2013;<\/li><li>Rule\n15 of the Companies (Share Capital and Debenture) Rules 2014, now known as\nCompanies (Share Capital and Debenture) Second Amendment Rules 2020;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Situations_that_Require_Filing_of_MCA_Form_SH_7\"><\/span>Situations that Require Filing of\nMCA Form SH 7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The situations that require filing of\nMCA Form SH 7 with the ROC are as follows:<\/p>\n\n\n\n<ol><li>Independent\nIncrease in the Share Capital;<\/li><li>Increase\nmade in the Share Capital after Passing of an Order by the Central Government;<\/li><li>Redemption\nof Preference Shares by the Company;<\/li><li>Consolidation\nof the Total Number of Shares;<\/li><li>Division\nof the Total Number of Shares;<\/li><li>Increase\nin the number of Members of the Company;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_in_Form_SH-7\"><\/span>Amendment in Form SH-7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Earlier, as per section 64 of the\nCompanies Act 2013, the above mentioned situations require the filing of Form\nSH 7 with ROC (Registrar of Companies). However, the MCA has amended section 64\nby inserting clause (e) in sub section (1), which is as follows:<\/p>\n\n\n\n<p><strong>\u201c(e) Cancel Shares<\/strong>\u00a0which, at the date of the passing of the resolution on that behalf, have not been taken or agreed to be taken by any other person, and diminish the amount of its share capital by the amount of the shares so cancelled.\u201d<\/p>\n\n\n\n<p><em>That means now the situations under which there is a need to file Form SH 7 with the ROC are as follows:<\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/483-Converted-swarit.png\" alt=\"Amendment in Form SH-7\" class=\"wp-image-1428\" width=\"573\" height=\"622\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/483-Converted-swarit.png 819w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/483-Converted-swarit-276x300.png 276w\" sizes=\"(max-width: 573px) 100vw, 573px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Independent\nIncrease in the Share Capital;<\/li><li>Increase\nmade in the Share Capital after Passing of an Order by the Central Government;<\/li><li>Redemption\nof Preference Shares by the Company;<\/li><li>Consolidation\nof the Total Number of Shares;<\/li><li>Division\nof the Total Number of Shares;<\/li><li>Increase\nin the number of Members of the Company;<\/li><li>Cancellation\nof the Unissued Shares of One Class and the Increment in the Shares of Another\nClass;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><em>Conclusion<\/em><em><\/em><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the MCA by way of its Notification No G.S.R. 794 (E), dated 24.12.2020, has amended the purposes for which there is a need to file MCA Form SH 7 with the ROC. The same was done by inserting (e) in sub section (1) of section 64 of the <strong>Companies Act 2013<sup><a href=\"http:\/\/ebook.mca.gov.in\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong>.<\/p>\n\n\n\n<p>The\nmain reason behind the same was to increase the scope and ambit of section 64\n(1), under which Form SH 7 is filed. Also, from now onwards the Companies (Share Capital and Debenture)\nRules 2014will be known as the Companies (Share Capital and Debenture) Second\nAmendment Rules 2020.<\/p>\n\n\n\n<p>For any other detail or query, reach out to <a href=\"https:\/\/swaritadvisors.com\/\" class=\"text-primary\"><strong>Swarit Advisors<\/strong><\/a>, our skilled experts are there to cater to all your doubts concerning Company Law.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/companies-compromises-arrangements-amalgamation-second-amendment-rules-2020\/\">Companies (Compromises, Arrangements &#038; Amalgamation) Second Amendment Rules 2020<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_Notification\"><\/span>Copy of the Official Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/SecondAmdtRules_24122020-fORM-sh-7.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">SecondAmdtRules_24122020-fORM-sh-7<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the MCA (Ministry of Corporate Affairs) has used its powers given under the provision of section 143 (11) of the Companies Act 2013 and issued a Notification No. G.S.R. 794(E), dated 24.12.2020, concerning the Amendments made by it in Form SH-7. Further, the said amendment was made under the Companies (Share Capital and Debenture) [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[188],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1423"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1423"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1423\/revisions"}],"predecessor-version":[{"id":1433,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1423\/revisions\/1433"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1425"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}