Dear All,
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 Crore 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 Crore or more of paid-up capital.
This will surely reinforce the intention and objective of the Companies Act, 2013 being Governance and Compliance. New Rule 8A has been inserted in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, which is reproduced below:
“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.”
Please find below the link to download MCA notification is reproduced here under.
https://www.egazette.nic.in/WriteReadData/2014/159829.pdf
Hope this information would be of some help.
Thanks
CS Ankur Garg
CAclubindia
