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Appointment of md

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 Can a whole time Company secretary, in employment of the Company, be appointed as the managing Director of any other company at the same time?
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Ajay Mishra

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Ajay Mishra (Expert)
22 February 2012 Hi


No....a company secretary who is in whole time employment of the company can not become the MD of an other company.
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Ajay Mishra

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Ajay Mishra (Expert)
22 February 2012 Hi


The appointment of whole time company secretary as part time director on the Board of director of the company does not require approval under section 269 so long as substantial power of the management of the affairs of the company are not vested in the incumbent.(Letter No. 16/39-CL-III/85, dated 26.6.1987.
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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 can u please refer the concerned section or text
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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 can u please refer the concerned section or text
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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 thanx for your reply
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Ajay Mishra

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Ajay Mishra (Expert)
22 February 2012 Hi



Professional misconduct in relation to Company Secretaries in Practice (Part I of the First Schedule containing 11 clauses)

A Company Secretary in Practice shall be deemed to be guilty of professional misconduct, if he–
(1) allows any person to practice in his name as a Company Secretary unless such person is also a Company Secretary in practice and is in partnership with or employed by him;

(2) pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner, or a member of any other professional body or with such other persons having such qualifications as may be prescribed for the purpose of rendering such professional services from time to time in or outside India.
Explanation. – In this item, “partner” includes a person residing outside India with whom a Company Secretary in practice has entered into partnership which is not in contravention of item (4) of this Part;
(3) accepts or agrees to accept any part of the profits of the professional work of a person who is not a member of the Institute:
Provided that nothing herein contained shall be construed as prohibiting a member from entering into profit sharing or other similar arrangements, including receiving any share commission or brokerage in the fees, with a member of such professional body or other person having qualifications, as is referred to in item (2) of this part;
(4) enters into partnership, in or outside India, with any person other than a Company Secretary in practice or such other person who is a member of any other professional body having such qualifications as may be prescribed, including a resident who but for his residence abroad would be entitled to be registered as a member under clause (e) of sub-section (1) of section 4 or whose qualifications are recognized by the Central Government or the Council for the purpose of permitting such partnerships;
(5) secures, either through the services of a person who is not an employee of such company secretary or who is not his partner or by means which are not open to a Company Secretary, any professional business:
Provided that nothing herein contained shall be construed as prohibiting any arrangement permitted in terms of items (2), (3) and (4) of this Part;
(6) solicits clients or professional work, either directly or indirectly, by circular, advertisement, personal communication or interview or by any other means:
Provided that nothing herein contained shall be construed as preventing or prohibiting–
(i) any company secretary from applying or requesting for or inviting or securing professional work from another company secretary in practice; or
(ii) a member from responding to tenders or enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence;
(7) advertises his professional attainments or services, or uses any designation or expressions other than Company Secretary on professional documents, visiting cards, letterheads or sign boards, unless it be a degree of a University established by law in India or recognized by the Central Government or a title indicating membership of the Institute of Company Secretaries of India or of any other institution that has been recognized by the Central Government or may be recognized by the Council:
Provided that a member in practice may advertise through a write up setting out the services provided by him or his firm and particulars of his firm subject to such guidelines as may be issued by the Council;
(8) accepts a position as a Company Secretary in practice previously held by another Company Secretary in practice without first communicating with him in writing;
(9) charges or offers to charge, accepts or offers to accept, in respect of any professional employment, fees which are based on a percentage of profits or which are contingent upon the findings, or result of such employment, except as permitted under any regulation made under this Act;
(10) engages in any business or occupation other than the profession of Company Secretary unless permitted by the Council so to engage:
Provided that nothing contained herein shall disentitle a Company Secretary from being a director of a company except as provided in the Companies Act, 1956;
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Ajay Mishra

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Ajay Mishra (Expert)
22 February 2012 Hi



Professional misconduct in relation to Company Secretaries in Practice (Part I of the First Schedule containing 11 clauses)

A Company Secretary in Practice shall be deemed to be guilty of professional misconduct, if he–
(1) allows any person to practice in his name as a Company Secretary unless such person is also a Company Secretary in practice and is in partnership with or employed by him;

(2) pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner, or a member of any other professional body or with such other persons having such qualifications as may be prescribed for the purpose of rendering such professional services from time to time in or outside India.
Explanation. – In this item, “partner” includes a person residing outside India with whom a Company Secretary in practice has entered into partnership which is not in contravention of item (4) of this Part;
(3) accepts or agrees to accept any part of the profits of the professional work of a person who is not a member of the Institute:
Provided that nothing herein contained shall be construed as prohibiting a member from entering into profit sharing or other similar arrangements, including receiving any share commission or brokerage in the fees, with a member of such professional body or other person having qualifications, as is referred to in item (2) of this part;
(4) enters into partnership, in or outside India, with any person other than a Company Secretary in practice or such other person who is a member of any other professional body having such qualifications as may be prescribed, including a resident who but for his residence abroad would be entitled to be registered as a member under clause (e) of sub-section (1) of section 4 or whose qualifications are recognized by the Central Government or the Council for the purpose of permitting such partnerships;
(5) secures, either through the services of a person who is not an employee of such company secretary or who is not his partner or by means which are not open to a Company Secretary, any professional business:
Provided that nothing herein contained shall be construed as prohibiting any arrangement permitted in terms of items (2), (3) and (4) of this Part;
(6) solicits clients or professional work, either directly or indirectly, by circular, advertisement, personal communication or interview or by any other means:
Provided that nothing herein contained shall be construed as preventing or prohibiting–
(i) any company secretary from applying or requesting for or inviting or securing professional work from another company secretary in practice; or
(ii) a member from responding to tenders or enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence;
(7) advertises his professional attainments or services, or uses any designation or expressions other than Company Secretary on professional documents, visiting cards, letterheads or sign boards, unless it be a degree of a University established by law in India or recognized by the Central Government or a title indicating membership of the Institute of Company Secretaries of India or of any other institution that has been recognized by the Central Government or may be recognized by the Council:
Provided that a member in practice may advertise through a write up setting out the services provided by him or his firm and particulars of his firm subject to such guidelines as may be issued by the Council;
(8) accepts a position as a Company Secretary in practice previously held by another Company Secretary in practice without first communicating with him in writing;
(9) charges or offers to charge, accepts or offers to accept, in respect of any professional employment, fees which are based on a percentage of profits or which are contingent upon the findings, or result of such employment, except as permitted under any regulation made under this Act;
(10) engages in any business or occupation other than the profession of Company Secretary unless permitted by the Council so to engage:
Provided that nothing contained herein shall disentitle a Company Secretary from being a director of a company except as provided in the Companies Act, 1956;
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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 But we are concerned about company secretary in whole time employment.
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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2012 But we are concerned about company secretary in whole time employment.
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Ajay Mishra

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Ajay Mishra (Expert)
24 February 2012 Managing Director has substantially deal with the whole affairs of the company in that case how he do the job of whole time cs.
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