Sec. 383a

This query is : Resolved

CA Shakil Ahmed (Querist)
Follow

10 November 2013 Dear Freinds,
I am working in a pvt ltd company and recently our paidup capital has exceeded Rs. 5crore.
Since sec 383a is attarcted, i have adviced my company to appoint CS on retainership basis.
Kindly advice whether i have done right or wrong.
Time limit for appointment is 1 year from the date of increase. Kindly advice on this matter also.
Regards,
CA Shakil Ahmed

Ajay Mishra

Ajay Mishra (Expert)
Follow

10 November 2013 Hi

APPOINTMENT OF COMPANY SECRETARY
(Section 383A & Companies (Appointment and Qualifications of Secretary) Rules, 1988)

1 Every company having paid-up share capital of not less than Rs. 5 Crores shall have whole time secretary [Rule 2(1)].

2 Where the paid up share capital is increased to Rs. 5 Crores or more, the Company shall appoint whole time secretary within a period of 1 year from the date of such increase [Proviso to Rule 2(4)].

3 A company having a paid up share capital of less than Rs. 2 Crores may appoint any individual, possessing qualification specified in Rule 2(4), as its whole time secretary to perform duties of secretary, and any other ministerial or administrative duties [Rule 2(3)].

4 A company having a paid up share capital of Rs. 2 Crores or more but less than Rs. 5 Crores may appoint any individual who is member of ICSI, as a whole time secretary [Rule 2(3A)].

5 A company having paid up capital of Rs. 10 lakhs or more but less than Rs. 5 Crores shall obtain Compliance Certificate from PCS provided if such company has appointed Whole Time Secretary who is member of ICSI then compliance certificate is not required to be obtained.

6 Where the BOD comprises only two directors, neither of them shall be secretary of the Company.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now