Threshold limits restored for appointment of whole time cs

Co Act 2013 4465 views 9 replies

Ankur Garg

Company Secretary and Compliance Officer

114783 Points Joined January 2009

Dear All,

Following large scale protests by the Company Secretary Fraternity and post submission of representations by the Institute of Company Secretaries of India (ICSI), the Ministry of Corporate Affairs (MCA) has finally restored the threshold limits for appointment of Whole Time Company Secretary to Rs. 5 Crore and this requirement is also applicable to Private Companies. Earlier in the KMP Rules, the appointment of KMP was mandatory only for public companies with Rs. 10 Crore or more of paid-up capital.

This will surely reinforce the intention and objective of the Companies Act, 2013 being Governance and Compliance. New Rule 8A has been inserted in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, which is reproduced below:

“8A. Appointment of Company Secretaries in companies not covered under rule 8.—A company other than a company covered under rule 8 which has a paid up share capital of five crore rupees or more shall have a whole-time company secretary.”

Please find below the link to download MCA notification is reproduced here under.

https://www.egazette.nic.in/WriteReadData/2014/159829.pdf

Hope this information would be of some help.

Thanks
CS Ankur Garg

Connect through Facebook

Replies (9)

Zulfikar Surti

Student

431 Points Joined February 2009

Thank you sir. But, I think PCSs are still in danger zone as compliance certificate and pre certification are in vague.

Mohit Aggarwal

FCA ACS

73 Points Joined January 2012

Sir,

if any company due to financial difficulty is not able to appoint CS, what will be consequences

Vaiyapuri kannan

V.P.FINANCE & COMPANY SECRETARY

274 Points Joined August 2010

Section 8A is being inserted by keeping rule 8 without any change , it means that private companies having paid upcapital of Rs.5 Crores or more must appoint full time company secretary ( vide rule 8 of Appointment & remuneration of managerial personnel , 2014 ) , whereas all unlisted public companies having paid up capital of less than Rs.10 Crores are exempted from appointing full time company secretary vide rule 8 . There is no logic on compelling the private company to appoint CS once it has paid up capital of Rs.5 Crs whereas there is no such compulsion on unlisted public companies to appoint full time CS once it's paid up capital crosses Rs .5 Crs .

Ankur Garg

Company Secretary and Compliance Officer

114783 Points Joined January 2009

Originally posted by : Mohit Aggarwal
	Sir, if any company due to financial difficulty is not able to appoint CS, what will be consequences

Oops...that financial difficulty exception as provided in Section 383A of CA 1956, is not there in CA 2013.

Vaiyapuri kannan

V.P.FINANCE & COMPANY SECRETARY

274 Points Joined August 2010

Yes , Financial difficulty was one of the grounds for not appointing full time CS in the previous Act whereas nothing was mentioned about this kind of excuses in the current CA 2013 becuase the CS would come under KEY MANAGERIAL PERSONNEL .

Ritin Kharbanda

441 Points Joined July 2009

Appointment here means Employment only ?

Ankur Garg

Company Secretary and Compliance Officer

114783 Points Joined January 2009

Originally posted by : Ritin Kharbanda
	Appointment here means Employment only ?

Yes. It is all about employment for which DIR.12 is to be filed with OC.

Thanks

Ritin Kharbanda

441 Points Joined July 2009

Originally posted by : Ankur Garg
	Originally posted by : Ritin Kharbanda Appointment here means Employment only ? Yes. It is all about employment for which DIR.12 is to be filed with OC. Thanks

What is the time limit to appoint a CS under CO's Act,2013.

Regards

Bhavika Kakadiya

Partner

21 Points Joined June 2014

Dear sir,

When any private company falls under rule 8A after increasing its paid up capital to Rs. 8 crores , then within which time limit company Sectretary must be appointed.

Regards