CHANGES IN THE ELIGIBILITY CRITERIA OF ‘APPOINTMENT OF WHOLE TIME COMPANY SECRETARY’ AND ‘SECRETARIAL AUDIT’

(1) Compulsory appointment of Company Secretaries in companies :

  • From 1st April, 2020, every listed company, every other public company and private company having a paid-up share capital of Rs. 10 crore or more shall have a whole -time company secretary.
  • Previously, every company which has a paid-up share capital of Rs. 5 crore or more was required to appoint whole -time company secretary.

(2) Secretarial Audit Report :

  • Earlier, only public companies having a paid-up share capital of Rs. 50 crore or more; or turnover of Rs. 250 crore or more were covered under the Secretarial Audit criteria.
  • Now in addition to this, every company (including a private company) having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 crore or more shall also need to get Secretarial Audit Report from a Company Secretary in Practice.

Note : Amendment also provides that the paid-up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.

To read the Amendment Notification Please Click Here