Notification on Appointment of Whole-Time Company Secretary and Secretarial Audit

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Mar 30, 2020

Notification on Appointment of Whole-Time Company Secretary and Secretarial Audit

MCA has, by a notification dated January 6, 2020, amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (‘Managerial Personnel Appointment Rules’), effective on and from April 1, 2020. Some of the key amendments are:

i. The paid-up share capital threshold beyond which private companies must mandatorily appoint a whole-time company secretary, has been increased from Rs 5 crore to Rs 10 crore (approx. US$ 660,000 to US$ 1.32 million); and

ii. A new category of companies which are mandatorily required to conduct a secretarial audit has been introduced, e., every company having outstanding loans or borrowings from banks or public financial institutions, of at least Rs 100 crore (approx. US$ 1.32 million), as on the date of the latest audited financial statements.

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