Every Companies whether public or private having a paid up
capital of Rs. 5 Crores or more are required to appoint the
whole time company secretary who is the member of the
Institute of Company Secretaries of India and the companies
having paid capital not less then 10 lakhs to 5 crores are
required to obtaine the compliance certificate from the
Practicing Company Secretaries who hold the Certificate of
Practice, U/S 383A of the Companies Act.
As per section 383A of companies Act,1956
Every Company having a paid up share capital of rupees 2
crores or more must appoint whole time secretary.
where the paid up share capital is less than rupees 2
crores but more than rupees 10 lacs company must obtain
compliance certificate from whole time secretary in
practice and file the same with the registrar.
Secretarial Audit is a process to check compliance with the
provisions of various laws and
rules/regulations/procedures, maintenance of books, records
etc., by an independent professional to ensure that the
company has complied with the legal and procedural
requirements and also followed the due process. It is
essentially a mechanism to monitor compliance with the
requirements of stated laws.
Every company (both private & public )haveing a paid up
sahre capital of 2 crore or more have to appointa whole time
company secretary under section 383A of the company
secretaries of India,
Company haveing paid up share capital of 10lacks or more but
less than 2 crore have to collect a compliance certificate
from the practicing company secretary who is a member of
Every Company whether public or private having a paid up
capital of Rs. 2 Crors or more has to emloy a whole time
However, companies having paid up capital less than Rs 2 Cr
but more than 10Lacs may or may not appoint a whole time
company secretary but has to obtain a Compliance
Certificate from a company Secretary in practice.
This law is goverened in Section 383(A) of the Companies
Secreterial Audit is the process of verification of records
and documents to check compliance with various provisions
of laws, rules, procedures, maintainance of books records
etc.It ensures timely corrective measures when non-
compliance is detected
Is This Answer Correct ?
Varsha Rani Agarwal
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