Cs( appointment of cs)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 December 2013
It is must for the company to appoint CS having paid up cap of 5Crs.If a company have paid up capital of more than 5 Crs and the company have not yet appointed a CS, will there be any problem for the company? .
22 December 2013
In Company Act 1956 there was a gateway to escape the penalty for non appointment of CS which has been closed in Companies Act 2013.
Relevant section of Companies Act 1956 on this:-
383A. Certain companies to have secretaries
(1) Every company having such paid-up share capital as may be prescribed –------- as on date the prescribed limit is Rs. 5 crores ---------shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company: Provided that every company not required to employ a whole-time secretary under sub-section (1) and having a paid-up share capital of 10 lakh rupees or more shall file with the Registrar a certificate from a secretary in whole-time practice in such form and within such time and subject to such conditions as may be prescribed, as to whether the company has complied with all provisions of this Act and a copy of such certificate shall be attached with Board’s Report referred to in Section 217.
(1A) If a company fail to comply with the provisions of sub-section (1), the company and every officer of the company who is in default, shall be punishable with fine which may extend to five hundred rupees for every day during which the default continues.
Provided that in any proceedings against a person in respect of an offence under this sub-section, it shall be a defense 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.
1A worked as gateway for the companies.
There is no such loophole in the all new Companies Act 2013.
Section 203 deals with appointment of KMP (Which Includes CS) in the Companies Act 2013.
As per section 203(4)--
If a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every director and key managerial personnel of the company who is in default shall be punishable with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues.
Relevant section of Companies Act 1956 on this:-
383A. Certain companies to have secretaries
(1) Every company having such paid-up share capital as may be prescribed –------- as on date the prescribed limit is Rs. 5 crores ---------shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company: Provided that every company not required to employ a whole-time secretary under sub-section (1) and having a paid-up share capital of 10 lakh rupees or more shall file with the Registrar a certificate from a secretary in whole-time practice in such form and within such time and subject to such conditions as may be prescribed, as to whether the company has complied with all provisions of this Act and a copy of such certificate shall be attached with Board’s Report referred to in Section 217.
(1A) If a company fail to comply with the provisions of sub-section (1), the company and every officer of the company who is in default, shall be punishable with fine which may extend to five hundred rupees for every day during which the default continues.
Provided that in any proceedings against a person in respect of an offence under this sub-section, it shall be a defense 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.
1A worked as gateway for the companies.
There is no such loophole in the all new Companies Act 2013.
Section 203 deals with appointment of KMP (Which Includes CS) in the Companies Act 2013.
As per section 203(4)--
If a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every director and key managerial personnel of the company who is in default shall be punishable with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues.
22 December 2013
But Section 203 of Companies Act 2013 is not applicable as yet. It is not among the 98 section which were made effective from 12th September 2013. So as of now 383A of Companies Act 1956 is in force.
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 December 2013
THANK YOU SIR FOR SHARING THIS USEFULL INFORMATION
REGARDS
MANMOHAN SHARMA
REGARDS
MANMOHAN SHARMA
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