Regarding appointment of cs

Amit, tell me one thing, is there a shortage of Company Secretaries ? There are several unemployed and underpaid Company Secretaries in the job market !

If this company fails to appoint a qualified Company Secretary, the company and every officer of the company who is in default, shall be punishable with fine which may extend to Rs. 500 (to low !) for every day during which the default continues. 

If the financial position of the company does not permit his appointment, the company will have to prove this fact to the satisfaction of the jurisdictional court (proceedings are usually very slow, therefore, usually some companies do not take Sec. 383A seriously). If the Court finds that the company can employ other officials, then there is no reason or justification for not employing a Whole time Company Secretary.

As regarding the delay in appointment, the Central Government has not laid down any guidelines. It has to be decided on the merits of the case.

Regards,

Veeral Gandhi

Agree with the observations of the learned member.

Tell me the name of Company.  i will send u dozens of Qualified Company Secretary.

Thanks & Regards

Ronak shah

This is not a new thing for companies wanting to avoid the mandatory appointment of CS and this is one rather ridiculous loop hole in the law which provides an escape route for companies who do not wish to appoint a whole time company secretary.

Very true abhishek...

Under existing company law regime there is provisions for penalty but the absence of teeth only that is why people dont take company law seriously.

This is one of the basic reason why companies bill is waiting for.