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MCA Notification on CS Appointment and Secretarial Audit

13 Jan,2020

MCA vide notification dated Jan 3, 2020 has made following amendment to Companies(Appointment and Remuneration of Managerial Personnel) Rules,2014 as to requirement of appointment of whole-time company Secretary and Secretarial Audit effective from April 1st2020. As per the amended provisions,  ln case of private companies paid-up capital limit has been increased from five crores to 10 crores, for mandatory appointment of company Secretary. Secondly, the secretarial audit has been made applicable to every company having a loan or borrowing from the bank or financial institutions of Rs 100 crores or more.

Appointment of whole-time company secretary:

Current provision

Provision with effect from April 1st 2020

  1. Every listed company and public companies having a paid-up capital of ten crores or more are required to have a whole-time company secretary

                         or

  1. A Company other than the company mentioned in (i) above having a paid-up share capital of five crore or more are required to have a whole time company secretary.

  1. Every listed company and public companies having a paid-up capital of ten crores or more are required to have a whole-time company secretary

                             or

  1. Every Private Company having a paid up share capital of ten crore or more are required to have a whole time company secretary.

Requirement of Secretarial Audit Report:

Current provision

Provision with effect from April 1st 2020

  1. Every Public company having a paid up share capital of fifty crore rupee or more

 

Or

 
  1. Every Public company having a turnover of two hundred fifty crore rupees or more

  1. Every Public company having a paid up share capital of fifty crore rupee or more

 

Or

 
  1. Every Public company having a turnover of two hundred fifty crore rupees or more

                           Or

 
  1. Every Company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.

 

Explanation:

For the purpose of this sub-rule, it is clarified that the paid up-share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of the latest audited financial statement shall be taken into account.

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