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Applicability of sec 383a

Darshan Dodiya (Student CA Final ) (392 Points)

20 November 2012

hello sir..

would you please inform me to which companies provisions of section 383a is applicable..?

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K. CHITRA (CHARTERED ACCOUNTANT) (66 Points)
Replied 21 November 2012

Every listed company having paid up share capital of not less than Rs.5 crore is obligatory required to appoint a whole time secretary. In case the share capital exceeds Rs.10lakhs but less than Rs.5 crores, then it is mandatory to file compliance certificate which is to be obtained from a Secretary in whole – time practice.

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 21 November 2012

Every company having paid up capital of Rs. 5 Crore or more has to mandatorily appoint a whole time Company Secretary as per section 383A.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 21 November 2012

APPOINTMENT OF COMPANY SECRETARY
	(Section 383A & Companies (Appointment and Qualifications of Secretary) Rules, 1988)

1	Every company having paid-up share capital of not less than Rs. 5 Crores shall have whole time secretary [Rule 2(1)].

2	Where the paid up share capital is increased to Rs. 5 Crores or more, the Company shall appoint whole time secretary within a period of 1 year from the date of such increase [Proviso to Rule 2(4)].

3	A company having a paid up share capital of less than Rs. 2 Crores may appoint any individual, possessing qualification specified in Rule 2(4), as its whole time secretary to perform duties of secretary, and any other ministerial or administrative duties [Rule 2(3)].

4	A company having a paid up share capital of Rs. 2 Crores or more but less than Rs. 5 Crores may appoint any individual who is member of ICSI, as a whole time secretary [Rule 2(3A)].

5	A company having paid up capital of Rs. 10 lakhs or more but less than Rs. 5 Crores shall obtain Compliance Certificate from PCS provided if such company has appointed Whole Time Secretary who is member of ICSI then compliance certificate is not required to be obtained.

6	Where the BOD comprises only two directors, neither of them shall be secretary of the Company.

Summarized

Paid up Capital		Appointment of CS	Any Individual / Member of ICSI	Compliance Certificate
Rs. 5 Crores or more		Compulsory	Only Member of ICSI	N.A.

Rs. 10 Lakhs or more to Rs. 2 Crores		Voluntarily	Either of Above	Compulsory (Not required if CS is member of ICSI)

Rs. 2 Crores or more to Rs. 5 Crores		Voluntarily	Member of ICSI	Not required if appointment is made otherwise required