MCA vide notification dated 6th January, 2020 amended Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 to bring out changes in the scope of appointment of Company Secretary and Secretarial Audit to be effective from 1st April, 2020.
Below are the amendments made under Rule 8A and Rule 9 pursuant to section 203 and 204 respectively:
- Under Rule 8A (Appointment of Company Secretaries in Companies not covered under Rule 8), the limit of Paid- up share capital for appointment of Whole Time Company Secretary has been increased from Rs. 5 crores to Rs. 10 crores.
- Under Rule 9 (Secretarial Audit Report), additional criteria has been added to extend the scope of Secretarial Audit. In addition to Listed Companies and Public Companies with paid up share capital Rs. 50 Cr. or Turnover Rs. 250 Cr., the Companies having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 crores or more, are also required to have Secretarial Audit as per Section 204.
The Complete notification with all the amendment is attached herewith: