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Secretarial Audit plays a significant role in ensuring that a listed company complies with applicable corporate laws, securities laws, regulations, guidelines and governance requirements. In case of a BSE listed company, the appointment of Secretarial Auditor should be made in accordance with the pr
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A Secretarial Audit ensures that a listed company adheres to all applicable corporate laws, securities regulations, guidelines, and governance requirements.
The appointment is governed by Section 204 of the Companies Act, 2013, Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The auditor must be a Company Secretary in Practice, either an individual or a firm, holding a valid Peer Review Certificate from the Institute of Company Secretaries of India, and must be independent and not disqualified.
An individual Company Secretary in Practice can be appointed for a maximum of one term of five consecutive years. A firm of Company Secretaries in Practice or an LLP can be appointed for a maximum of two terms of five consecutive years each, followed by a five-year cooling-off period.
Yes, from 1 April 2025, the appointment or re-appointment of a Secretarial Auditor in a listed entity requires recommendation from the Board of Directors and approval from shareholders in the Annual General Meeting.
After Board approval, the company must submit the outcome to the BSE under Regulation 30 of SEBI LODR, including details like the auditor's name, reason for appointment, term, and profile.
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