Query regarding hire a practicing company secretary (pcs)

Hi,

Section 203 of Companies Act 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, necessitated that every listed company and every other public company having paid-up share capital of Rs 10 crores or more to appoint the Company Secretary in whole-time employment. All Private companies and such public companies having Paid-up share capital lower than Rs 10 crores were not required to appoint a Company Secretary.

Hcen , It is not required to appoint PCS , you may hire company secretary for your compilance purpsoe on case to case basis.i.e as per your requirement.

Thank you Sir but we are taking practicing company secretary services in both the companies thats why am asking that we should hire him in the another company or not compulsory??

Because in one company we already hired him and paying retainership fees to him. and i am asking only for the another group company.

According to me , your both the group company is not falling under the requirement of WCS , hence you can hire one PCS for all your company on retainership basis. 

No Sir my one Company (which has paid up cap. 6 crores) is falling under the requirement to appoint WCS. because as per recently notified Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a company other than a company which is required to appoint a whole time key managerial personnel and which is having paid up share capital of Rs. 5 Crores or more shall have a whole time Company Secretary.

By the way thank you so much for your quick reply.

Thanks ,

Rule  8  itself  is  debatable   The  word  and  is  in  between  listed  company  and  every  other  public  company.

Section 203 of Companies Act 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, necessitated that every listed company and every other public company having paid-up share capital of Rs 10 crores or more to appoint the Company Secretary in whole-time employment. All Private companies and such public companies having Paid-up share capital lower than Rs 10 crores were not required to appoint a Company Secretary.

Such provision was very much in debate as it limited the role of Company Secretary in companies having paid up share capital of less than Rs. 10 crores.

Therefore after much deliberation and representation MCA (Ministry of Corporate Affairs) vide the Notification No. G.S.R. 390(E) on 9th June 2014 in Official Gazette amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 regarding appointment of Company Secretary. As per the aforesaid notification now, companies having paidup capital of Rs 5 crores or more has to mandatorily have a Company Secretary in whole time employment.

So one of your company ( > 5 crore) falls under the mandatory appointment of CS but the other company is not. However there are some annual filings ( like mgt-4,aoc-4) which are applicable to all companies and hence most of the companies engage a PCS for the sake of convenience and ease of job. Even you can undergo a secretarial audit report voluntarily for the 4 crore company even though it is not mandatory. Hope my reply solves your query.