Has the scope for Company Secretary reduced? Rule 8A Amendment

Has the scope for Company Secretary reduced ? Rule 8A Amendment

Very Important Announcement for all CS Students

Section 203 read with Rule 8 and Rule 8A of Companies (appointment and managerial personnel) Rules 2014, as amended provides that Every Listed company or Public company having paid up share capital 10 crore or more or Private company having paid up share capital of 10 crore or more shall have a whole time company secretary.

(Earlier, Every listed company or any company having paid up share capital of 5 crore or more were required to appoint whole time CS). It means limits have been increased to double.

MCA in February 2019 introduced Form INC-22 (Active) to strengthen the governance structure. Under this, if a company with 5-crore paid-up capital and above does not intimate the details of CS by June 15, the company will be marked as ‘ACTIVE-non-compliant’.

All India Federation of Tax Practitioners (AIFTP) and Federation of Industry and Commerce of North East Region (FINER) made representations to enhance the limit, citing massive demand supply mismatch

Shri Naresh Gujral (son of I K Gujral, former PM of India) also called a paid up capital limit as illogical / bizarre

New Amended Rule 9 (Secretarial Audit Report)

For the purpose of Sec 204(1) of Companies Act, 2013, Every Listed Companies and following class of companies have to submit Secretarial Audit Report signed by Company Secretary in Practice Report with Board Report as per Sec 134(3):-

(a) Every public company having a paid-up share capital of fifty crore rupees or more; [or]

(b) Every public company having a turnover of two hundred fifty crore rupees or more; [or]

(c) Every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.

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