MGT-1 Register of Members is a statutory register that every company limited by shares is required to maintain under the Companies Act, 2013.
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The register contains details of all the members of the company, including their names, addresses, and shareholdings.
The MGT-1 Register of Members is an important document for several reasons.
First, it helps to ensure that the company has a complete and up-to-date record of its members. This is important for a number of reasons, such as:
- To ensure that all members are aware of the company’s activities and decisions. To facilitate the voting process at shareholder meetings.
- To calculate dividends and other distributions to members.
- To comply with the requirements of the Companies Act, 2013.
Second, the MGT-1 Register of Members can be used to prove the ownership of shares in the company. This can be important in a number of situations, such as:
- When a member wishes to sell their shares.
- When a company is being wound up.
- When a dispute arises between members over the ownership of shares.
The MGT-1 Register of Members must be maintained in a secure manner and must be accessible to members of the company on request. The register must also be kept up-to-date with any changes in the details of the members. Failure to maintain the MGT-1 Register of Members correctly can result in penalties being imposed on the company.