APPOINTMENT OF COMPANY SECRETARIES

Press Information Bureau
Government of India
 
Thursday, August 26, 2010
  Ministry of Corporate Affairs    
 
APPOINTMENT OF COMPANY SECRETARIES

 
  19:55 IST  
   
  The Minister of Corporate Affairs has said that whenever any case of a company found violating the provisions of Section 383A of the Companies Act, 1956 comes to the notice, Show Cause Notices are issued to the company and defaulting directors. Giving this information in written reply to a question in the Lok Sabha today, Shri Salman Khurshid, Minister of Corporate Affairs, informed the House that after consideration of the reply to the Show Cause Notices, prosecutions are filed in the jurisdictional Courts. Though certain companies do not appoint whole time Company Secretary due to their poor financial position, stoppage of business operations, non-availability of qualified company secretaries at remote places, prosecutions are filed regularly on year-to-year basis. During 2008-09, prosecution against 52 companies for non-compliance of Section 383A of the Act were filed. In the year 2009-10, prosecutions against 39 companies have been filed. Besides, show cause notices in respect of 210 companies have also been issued during the year 2009-10.

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KKP/ska
 
 
Replies (5)

Yes Ankur Ji, not only certain companies but many companies (having paid up capital as may be prescrebed ) do not appoint Whole Time Company Secretary. Because the provisions are too casual and proceedings are also very late and long therefore, Companies avoind to comply with the provisions of section 383A strictly.

 

There are the provisions of penalty but the procedure is very lazy, and the penalty too is not a big deal. The amount of penalty should be increased and the Companies Act should be given sharp teeth to deal with like issues.

 

Very Good and true observation Ankur Bhai...

According to me this is one of a big reason for a bit down position of Companies Secretaries as far as employment is concerned.


Well lets hope for the best

Ofcourse, we should always hope for the best and contribute, as we can, for the betterment and promotion of our Profession.

Right again...we must continue our efforts towards the betterment of our community and profession...platform may be different.

 

Rgds

Completely agree Ankur Ji..

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