India:
Mandatory Appointment Of Company Secretary In Whole-Time Employment.
16 July 2014
S&A Law Offices
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Section 203 of Companies Act 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
necessitated that every listed company and every other public
company having paid-up share capital of Rs 10 crores or more to
appoint the Company Secretary in whole-time employment. All Private
companies and such public companies having Paid-up share capital
lower than Rs 10 crores were not required to appoint a Company
Secretary.
Such provision was very much in debate as it limited the role of
Company Secretary in companies having paid up share capital of less
than Rs. 10 crores.
Therefore after much deliberation and representation MCA
(Ministry of Corporate Affairs) vide the Notification No. G.S.R.
390(E) on 9th June 2014 in Official Gazette amended the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
regarding appointment of Company Secretary. As per the aforesaid
notification now, companies having paidup capital of Rs 5 crores or
more has to mandatorily have a Company Secretary in whole time
employment.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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