30 January 2013
Our Company's paid up Share capital increased to Rs. 20 crore.As per Sec 383A whole time company Secretary required to be appointed within one year from the date of increase in paid up capital.Our Company suffer Loss from last one Year.Can our company take plea that it was beyond its capacity to engage a whole time secretary.
Further clarify the interpretation of below mentioned words in paragraph
383A. CERTAIN COMPANIES TO HAVE SECRETARIES
Provided that in any proceedings against a person in respect of an offence under this sub-section, it shall be a defence to prove that all reasonable efforts to comply with the provisions of sub-section (1) were taken or that the financial position of the company was such that it was beyond its capacity to engage a whole time secretary.]
I will say it again depends upon the facts of particular case and again on the turnover and business transactions of the Company and gross profit, if any, of the Company.
Because if the Company is having good turnover and incurring other types of Administrative or other types of Expenses then it is not acceptable that the Company can not afford a Company Secretary.Because Legislature has mandate CS on Paid up capital not on profit of the Company.
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