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:
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Current provision
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Provision with effect from April 1st 2020
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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
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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.
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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
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Every Private Company having a paid up share capital of ten crore or more are required to have a whole time company secretary.
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Requirement of Secretarial Audit Report:
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Current provision
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Provision with effect from April 1st 2020
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Every Public company having a paid up share capital of fifty crore rupee or more
Or
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Every Public company having a turnover of two hundred fifty crore rupees or more
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Every Public company having a paid up share capital of fifty crore rupee or more
Or
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Every Public company having a turnover of two hundred fifty crore rupees or more
Or
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Every Company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.
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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.
