{"id":1038,"date":"2019-11-11T06:26:56","date_gmt":"2019-11-11T06:26:56","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1038"},"modified":"2021-03-20T15:29:13","modified_gmt":"2021-03-20T09:59:13","slug":"the-role-of-the-company-secretary","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/","title":{"rendered":"Functions of a Company Secretary as per the Companies Act, 2013"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Company Secretary is a prominent official in a company who is responsible for the efficient administration of a company. All private sector and public sector companies need to appoint a Company Secretary. In this article, we are going to focus on the key roles and responsibilities of a Company Secretary in a company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Who_is_a_Company_Secretary\" >Who is a Company Secretary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Which_Companies_Need_to_Appoint_a_Company_Secretary\" >Which Companies Need to Appoint a Company Secretary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Qualifications_of_a_Company_Secretary\" >Qualifications of a Company Secretary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#How_is_a_Company_Secretary_Appointed\" >How is a Company Secretary Appointed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Roles_and_Responsibilities_of_the_CS\" >Roles and Responsibilities of the CS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#What_are_the_documents_required\" >What are the documents required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#What_is_the_process_to_appoint_a_Company_Secretary_CS\" >What is the process\nto appoint a Company Secretary (C.S.)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Penalty_for_Not_Appointing_a_CS_in_a_Company\" >Penalty for Not Appointing a CS in a Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Disqualification_of_Company_Secretary\" >Disqualification of Company Secretary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/#Takeaway\" >Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_a_Company_Secretary\"><\/span>Who is a Company Secretary?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Company\nSecretary is one of the most senior positions in a public or private\norganization. Furthermore, a Company Secretary is placed at the topmost level\nin an entity which means at the Managerial Level. Such official is responsible\nfor the proper functioning of the company and to ensure that the company acts\nin accordance with all the compliances laid down by the law.<\/p>\n\n\n\n<p>Furthermore, a company secretary is a member of the Institute of Company Secretary of India {ICSI} or holds a relevant qualification as specified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_Companies_Need_to_Appoint_a_Company_Secretary\"><\/span>Which Companies Need to Appoint a Company Secretary?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&nbsp;As per the amendments in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 now companies having paid-up capital of Rs. 5 crores or more has to appoint a Secretary in the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Qualifications_of_a_Company_Secretary\"><\/span>Qualifications of a Company Secretary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According\nto Section 2 (24) of Companies Act, 2013, a Company Secretary must hold\nspecific requirements laid down by the Indian Government from time to time.\nFurthermore, the qualifications specified by the Companies (Secretary\u2019s\nQualifications) Rules 1975 for the appointment of a CS;<\/p>\n\n\n\n<ol><li>In case of a&nbsp;<a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Private Limited company<\/strong><\/a>&nbsp;having paid-up capital of Rs. 50 Lakhs the Secretary must be a member of the Institute of Company Secretaries of India.<\/li><li>In case of any other type of company, the Secretary needs to hold one or more of the given qualifications;<ul><li>Is owning a membership of the Institute of Company Secretaries of India (ICSI)<\/li><li>A law degree from any reputed university<\/li><li>A member of the Institute of Cost and Works Accountants of India<\/li><li>Postgraduate degree in Commerce granted by any reputed university<\/li><li>A Diploma in Company Law from any India Law Institute<\/li><\/ul><\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_a_Company_Secretary_Appointed\"><\/span>How is a Company Secretary Appointed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A CS is\nappointed by passing a resolution at the board meeting. Prior to the\nappointment, the members of the Board formulate the terms and conditions of\nregarding the appointment. Additionally, the company secretary needs to issue a\nwritten consent for the role.<\/p>\n\n\n\n<p>After the selection of the CS, the company has to provide his details (or of other KMPs) in the register of Key Managerial Personnel (KMP) and submit it to the <strong>Registrar of Companies (ROC<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/MinistryV2\/registrarofcompanies.html\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong> in Form DIR-12. Also, Form MGT-14 needs to be filed within 30 days of the passing of the Board Resolution with the CTC and Consent Letter.<\/p>\n\n\n\n<p>Furthermore, the appointed CS is entitled to become the director of the company by taking prior consent from the Board. However, It is not allowed to hold office in more than one company or organization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Restrictions on CS<\/h3>\n\n\n\n<p><strong><em>The CS is\nnot entitled to perform the following tasks in a company;<\/em><\/strong><\/p>\n\n\n\n<ol><li>Cannot\nsign or agree to a contract on behalf of the company, unless backed by the\nBoard of Directors<\/li><li>Borrow or\nask for money in the name of the company<\/li><li>Call\nmeetings of third parties<\/li><li>Acknowledge\nany debt against the suit filed against the firm<\/li><li>Transfer\nor register shares without taking prior consent of the Board of Companies<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Roles_and_Responsibilities_of_the_CS\"><\/span>Roles and Responsibilities of the CS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A company\nsecretary is an essential link between the entity and its shareholders, Board\nof Directors, government and other regulatory bodies and all other\nstakeholders.<\/p>\n\n\n\n<p>Furthermore,\nthe following are the roles and responsibilities of a Secretary or CS as per\nSection 205 of Companies Act, 2013;<\/p>\n\n\n\n<ol><li>To inform\nthe Board about the compliance of the provisions of the Act<\/li><li>To ensure\nthat the entity complies with all the applicable secretarial standards<\/li><li>And to\ndeliver other duties which are prescribed by the Act<\/li><\/ol>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong>&nbsp;Also, as per Section 205 (2) of the Companies Act, 2013, the provisions contained in the Sections 204 and 205 of this Act does not make any effect on the functions of the Board of Directors, Chairpersons, managing directors or the whole time director of the company.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required\"><\/span>What are the documents required?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The following documents are required for appointment of Company Secretary (C.S.): \u2013<\/strong><\/p>\n\n\n\n<ul><li>Intimation letter to stock exchange<\/li><li>Consent letter of proposed Company Secretary (C.S.)<\/li><li>Copy of Board Resolution for Board Meeting<\/li><li>Appointment letter<\/li><li>Any other as required<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_process_to_appoint_a_Company_Secretary_CS\"><\/span><strong>What is the process\nto appoint a Company Secretary (C.S.)?<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The following process is followed for appointment of Company C.S. : \u2013<\/strong><\/p>\n\n\n\n<ul><li>Preparation of a notice of board meeting together with draft resolution for the consideration of candidate for appointing as Company Secretary that has to be passed in the board meeting.<\/li><li>Sending notice to all the directors of company together with schedule and plan of Board meeting <\/li><li>Assemble the board meeting and pass the Board Resolution.<\/li><li>Sending the result of the Board Meeting to the Stock exchange for all the listed companies where the company\u2019s securities are listed considering from the conclusion of meeting within the time period of 30 minutes. <\/li><li>Letter of appointment shall be issued to the candidate who is selected for appointment as C.S.<\/li><li>File the e-Form DIR-12 together with the attachments to the Companies Registrar in reference to the appointment of director and at the same time as a Company Secretary (C.S.) but within the time period of thirty (30) days from the appointment as Company Secretary (C.S.). g. Appointment letter shall be sent to Company Secretary (C.S.) and entry shall be made in a minute books, register, etc of company. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_for_Not_Appointing_a_CS_in_a_Company\"><\/span>Penalty for Not Appointing a CS in a Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case a company fails to appoint a CS or any other KMP, it is liable for a fine which is not less than Rs. 1 Lakh but not exceeding Rs. 5 Lakhs. Additionally, a fine of Rs. 1000 would be levied as fine on each director of the company in the defaulting company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disqualification_of_Company_Secretary\"><\/span>Disqualification of Company Secretary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case,\nthe Board of Directors is not satisfied with the performance of the CS, and the\ncompany officials can remove him by providing written notice in advance.\nAdditionally, a secretary is a general employee of a company, so all the rules\nof the company, including the resignation of an employee also applies to the\nCS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A CS is an essential part of the company who ensures that a company complies with all the provisions which are laid down by the law. A CS is basically an employee of the company, even though he holds such a high rank which is near to that of a director of a company. Typically, a CS is the only employee of the company who has advisory powers in the firm.<\/p>\n\n\n\n<p>Basically, a CS\u2019s advice is taken forward and is used to carry out prominent functions and framing policies of the company. Therefore, he is the only outsider who is allowed to be present in the Board Meeting. A CS must be a member of the ICSI&nbsp;or holds any other relevant qualification.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-of-a-public-limited-company\/\">Annual Compliance of a Public Limited Company: Rules and Procedures<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Company Secretary is a prominent official in a company who is responsible for the efficient administration of a company. All private sector and public sector companies need to appoint a Company Secretary. In this article, we are going to focus on the key roles and responsibilities of a Company Secretary in a company. Who [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":27869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[174,175],"acf":{"service_id":"321"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":20237,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1038"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1038"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1038\/revisions"}],"predecessor-version":[{"id":27870,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1038\/revisions\/27870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/27869"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}