Appointment of Company Secretary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 My Company failed to appoint A whole Time Company Secretary as its capital is more than 5 crores.

Please provide some guidelines to be saved from penalty.

Ankur Garg

Ankur Garg (Expert)
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30 March 2010 Please go through section 383A carefully which provides a defense to the company of financial problem to appoint CS.

Regards

Rasesh

Rasesh (Expert)
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30 March 2010 Proviso to 383A is given below. There are two defences:

Provided that in any proceedings against a person in respect of an offence under this sub-section, it shall be a defence to prove that

all reasonable efforts to comply with the provisions of sub-section (1) were taken or

that the financial position of the company was such that it was beyond its capacity to engage a whole-time secretary