Company Secretary is the Secretary of Company and not shareholders

Last updated: 17 February 2023

Save Share

Quick Summary

The National Company Law Tribunal (NCLT) has clarified that a Company Secretary (CS) acts on behalf of the company, not its shareholders. The NCLT ruled that a CS has the authority and responsibility to ensure the company complies with laws and maintains good corporate governance. If the board fails to adhere to these principles, the CS has the power to approach authorities like the NCLT to enforce compliance.

Court :
Chennai Bench of NCLT

Brief :
The Companies Act, 2013 itself defined the duties and responsibilities of a CS. For listed and some specified companies it is mandatory to appoint a CS. A CS works as a link between outside various types of government agencies, judicial, quasi-judicial bodies, local bodies, enforcement agenesis etc. and the company /shareholders. A CS is an employee of the Company and he/she is not CS of shareholders of the Company. A CS may be penalised as an "Officer in default" is he/she is not carrying his duties and responsibilities according to the norms.

Citation :
MAYANK AGARWAL VS. TECHNOLOGY FRONTIERS (INDIA) PVT. LTD. REPRESENTED BY SRIRAM SRIVATSAN, PCS

Daily Limit Reached