Sec 203 of companies at 2013, provides for the appointment of a whole-time company secretary in all the companies belonging to a specified class. The said class is provided under the rules.
Prior amendment, the rule 8a of the rules provided that all the companies not covered under rule 8[1] and having a paid-up share capital of five crore inr or more shall have a whole-time company secretary.
The amendment has substituted the rule by providing that every private company which has a paid-up share capital of ten crore inr or more shall have a whole-time company secretary.
Post amendment the following companies are mandatorily required to appoint a whole-time company secretary:
- Listed company,
- Unlisted public company having paid-up share capital of inr 10 crore or more,
- Private company having paid-up share capital of inr 10 crore or more.
Rule 9 – secretarial audit report
Pursuant to sec 204, every listed company and companies belonging to such other class shall annex a secretarial audit report, given by a practicing company secretary, with its board report. Such other class of company which are required to comply with this provision are given in rule 9 of the rules.
Prior amendment, such class of companies were: –
(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;
Post amendment, one more class of companies has been added in rule 9. The new class of companies is every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.
Post amendment the following companies are mandatorily required to conduct a secretarial audit:
(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.
