All co to devise proper system to ensure legal compliance

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)   (8229 Points)

14 March 2014  

Section 134(5)(f) of CA 2013 requires that Directors' Responsibility Statement in Board's report will also state that:

"the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively."

Hence all companies - whether private or public - will have to ensure compliance of all legal provisions.  Many legal compliance software are also available in the market. Looking to this provision, bigger companies may have to go for that.

 

Thanks