As per Section 204 (1) of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Secretarial Audit is applicable to the following companies: Every listed company. Every public company having paid up share capital of Rs. 50 crore or more.
Is there any need for secretarial audit?
Broadly, the need for Secretarial Audit is: An effective mechanism to make sure of the compliance with the legal and procedural requirements. Provides a level of confidence to the directors & Key Managerial Personnel etc.
How many secretarial audit a PCS can do?
10 Secretarial Audits per partner/ PCS, and • an additional limit of 5 secretarial audits per partner/PCS in case the unit is peer reviewed. These limits will be applicable for the Secretarial Audit Reports to be issued for the financial year 2016-17 onwards.
What is the duty of board of directors towards secretarial auditor?
The Board should give its comments on the Secretarial Audit in its report to the shareholders.” Page 9 MEANING Secretarial Audit is compliance audit; it is a part of total compliance management in an organization. The Secretarial Audit is an effective tool for corporate compliance management.
Who appoints Company Secretary?
Mandatory Requirements Company Secretary shall be appointed by means of a resolution of the Board containing the terms and conditions of the appointment including the remuneration. A Company Secretary shall not hold office in more than one company except in its subsidiary company at the same time.
Can a Company Secretary be appointed as internal auditor?
The said companies are required to appoint a person as an Internal Auditor. So with the Companies Act 2013, professionals such as Chartered Accountants, Cost Accountants, Company Secretaries, Advocates and the like can be appointed as Internal Auditors.
Is secretarial standard 4 Mandatory?
EFFECTIVE DATE – Secretarial Standard 4 on Report of Board Of Directors shall come into effect from 1st October, 2018. The Companies Act, 2013, requires the Board of Directors of every company to attach its report to the financial statements to be laid before the members at the annual general meeting.
Is secretarial standard 3 mandatory?
While Final Dividend is recommended by the Board and declared by the Members, approval of Members is not required for declaration of Interim Dividend. However, this Page 15 10 SS-3 – SECRETARIAL STANDARD ON DIVIDEND right is subject to the availability of distributable profits.
What is the applicability of secretarial audit to companies?
Applicability of Secretarial Audit As per section 204 (1) of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Secretarial Audit is appliable on following categories of companies
Is there an amendment to the secretarial audit rules?
The MCA vide Notification G.S.R. 13 (E) dated 3rd January 2020 provided an amendment to the applicability rules of Secretarial Audit.
When does the secretarial auditor report to the board?
As a good practice, the Secretarial Auditor can submit a report to the Board at the end of each quarter as to the compliances of the Company. The Act is silent regarding the tenure of appointment of a secretarial auditor.
What is the tenure of a secretarial auditor?
The Act is silent regarding the tenure of appointment of a secretarial auditor. One can determine that the audit is conducted by him is for a particular reporting period and his duty ends as the report is duly submitted by him. Therefore, it can be said that the appointment can be made for each reporting period.