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Secretarial standards

1493 views 7 replies

manpreet.kaur

Student

184 Points Joined September 2012

DOES SECRETARIAL STANDADRS OVERRULE COMPANIES ACT

Replies (7)

Simranjeet Singh

Proprietor at S Simranjeet & Associates

4396 Points Joined October 2009

No Secreterial Standards does not overrule Companies Act and till now they are only recommendatory not compulsory to adhere to.............

Guest

Rightly said by Simranjeet. Secreterial Standards does not overrule Companies Act and till now they are only recommendatory.

But, for the first time, the Secretarial Standards have been introduced in the Companies Bill 2011 and provided statutory recognition [Please refer Clause 118(10) & 205 of the Companies Bill 2011].

Clause 118(10) reads as;

“Every company shall observe Secretarial Standards with respect General and Board Meetings specified by the Institute of Company Secretaries of India constituted under section 3 of the Company Secretaries Act, 1980 and approved by the Central Government.”

Clause 205 casts duty on the Company Secretary to ensure that the company complies with the applicable Secretarial Standards.

It is the beginning of a new era where non financial standards have been given importance and statutory recognition besides Financial Standards.

Regards,

Veeral Gandhi

manpreet.kaur

Student

184 Points Joined September 2012

thanx simran n veeral :) gt my clear answer

Tanveer Md Masood

Indispensable

361 Points Joined July 2012

DEAR MS.MANPREET KAUR..

SECRETARIAL STANDARDS HAVE BEEN LAID DOWN TO ASSIST IN THE UNDERSTANDING OF THE COMPANIES ACT. IT WORKS IN CLOSE CORORDINATION AND ACTS AS A LITERAL HANDBOOK OR GATEWAY TO THE COMPANIES ACT. IT IS RECOMMENDATORY IN NATURE AND DOES NOT OVERRIDE THE COMPANIES ACT.

REGARDS..

TANVEER MD MASOOD

CALCUTTA.