COMPANY SECRETARY SECTION 383

it is 5 crore

COMPANIES (APPOINTMENT AND QUALIFICATIONS OF SECRETARY) AMENDMENT RULES, 2009 - AMENDMENT IN RULE 3

In exercise of the powers conferred

by clauses (a) and (b) of sub-section (1) of section 642 read with clause (45) of section 2 and section 383A of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualifications of Secretary) Rules, 1988, namely :—

1.  (1) These rules may be called the Companies (Appointment and Qualifications of Secretary) Amendment Rules, 2009.

(2) They shall come into force from the 15th day of March, 2009.

2. In the Companies (Appointment and Qualifications)of Secretary) Rules, 1988, in rule 2,

(i) in sub-rule (1) and in the proviso to sub-rule (4), for the words "rupees two crores" the following words shall be substituted, namely:—

"five crore rupees";

(ii) in sub-rule (3), the second and third proviso shall be omitted;

(iii) after sub-rule (3), the following sub-rule shall be inserted, namely:—

"(3A) A company having a paid up share capital of two crore rupees or more but less than five crore rupees may appoint any individual who possesses the qualification of membership of the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (56 of 1980), as a whole-time secretary to perform the duties of a secretary under the Companies Act, 1956:

Provided that where a company has appointed under sub-rule (3) or this sub-rule, a whole-time company secretary, possessing the qualification of membership of the Institute of Company Secretaries of India, such a company is not required to obtain a certificate from a secretary in whole-time practice under rule 3 of the Companies (Compliance Certificate) Rules, 2001."

5 crs..wef d date of notification itself..

Yes, it is 5 crore. For effective date plz go through the notification posted above.

Regards

dear bhumika,

its not from the date of notification rather its from 15th March, 2009 as clearly specified in the notification in sub-rule (2) of Rule 1 of above as under:

"They shall come into force from the 15th day of March, 2009"

w.e.f. 15/03/2009 (as mentined in the notification) every company having paid up capital of not less that Rs. 5 crore is required to appoint a Whole time Company Secretary.

Agree with learned members. There is a difference between date of issue of notification and effective date of Notification.

Regards 

For financial year 2008-2009 it will be Rs. 5 crore.

ya sorry..wef 15th  march..

Sir is it mandatory for government company to have company secretary if the paid up capital exceeds 10 crores

Originally posted by : Sanjiv Kumar Nayar
	Sir is it mandatory for government company to have company secretary if the paid up capital exceeds 10 crores

Yes, it is mandatory for every company to appoint Company Secretary if its paid up capital exceeds Rs. 5 Cr. and before 15th March, 2009 appointment of CS was mandatory for every co. having paid up cap. of more than Rs. 2 Cr.

I have a question regarding this:

For a co. having paid up cap. = Rs. 5Cr., is it mandatory to appoint CS? I mean the relevant word is "equal to" or "exceeding" Rs. 5 Cr.?

The requirement of appointment is based on paid up capital irrespective of status of the companies