CLR Notes: Following large scale protests by the Company Secretary fraternity and post submission of representations by the Institute of Company Secretaries of India (ICSI), the Ministry of Corporate Affairs (MCA) has finally restored the threshold limits for appointment of Whole Time Company Secretary to Rs. 5 cr and this requirement is also applicable to private companies. Earlier in the KMP Rules, the appointment of KMP was mandatory only for public companies with Rs. 10 cr or more of paid-up capital.
This will surely bring cheer in the Company Secretary fraternity and also reinforce the intention and objective of the Companies Act, 2013 being Governance and Compliance.
Good Job MCA and ICSI
The notification is reproduced here under.
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MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 9th June, 2014
G.S.R. 390(E).”In exercise of the powers conferred by sub-section (1) of Section 203 of the Companies
Act, 2013 (18 of 2013) read with clause (51) of Section 2 and Section 469 of the said Act, the Central Government hereby makes the following rules to amend the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, namely:”
1. (1) These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel)
Amendment Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 after rule 8, the following rule shall be inserted, namely:”
8A. Appointment of Company Secretaries in companies not covered under rule 8.”A company other
than a company covered under rule 8 which has a paid up share capital of five crore rupees or more shall have a whole-time company secretary.
[F. No. 1/11/2013-CL-V]
AMARDEEP SINGH BHATIA, Jt. Secy.
Note : The principal rules were published in the Gazette of India vide notification number G.S.R. 249(E), dated the
31st March, 2014.
