Financial Daily from THE HINDU group of publications
Friday, Jun 14, 2002
Financial Daily from THE HINDU group of publications Friday, Jun 14, 2002 |
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Corporate
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Regulatory Bodies & Rulings Norms for appointment of co secretaries eased Our Bureau
NEW DELHI, June 13 THE Department of Company Affairs (DCA) has relaxed the norms for appointment of company secretaries by raising the paid-up capital limit prescribed under the Companies Act. Vide its recent notification amending the Companies (Appointment and Qualifications of Secretary) Rules 1988, the DCA has raised the limit from the existing Rs 50 lakh to Rs 2 crore. Section 383A of the Companies Act states that every company having such paid-up capital as may be prescribed shall have a whole-time secretary. Reacting to this move, industry sources said that it would bring respite to the smaller companies who earlier had to necessarily appoint company secretaries, industry sources said. According to DCA, "This move was based on the representations from the trade and industry that the limit should be raised.'' DCA has been receiving complaints that the companies, which fall under the Rs 50 lakh bracket, have not been complying with the law. "The bigger corporate houses anyway have company secretaries, it is those companies which fall under the said bracket which have been making excuses for non-compliance,'' sources explained.
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