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Appointment of cs in a listed company

Jayanti Dey (Practicing Company Secretary) (271 Points)

08 February 2016

While filing MR-1 for the appointment of CS in a listed Company, is it mandatory to attach appointment letter from Nomination & Remuneration Committee for the said appointment with it? If yes, Kindly send me a format for the same.

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6 Replies

CS Divesh Goyal (Practicing Compnay Secretary) (50535 Points)
Replied 08 February 2016

Ms. Jayanti,

yes its mandatory for them to attach appointment letter.

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Sarada Bhamidipati (CS) (58 Points)
Replied 20 February 2016

I suppose attachment of appointment letter is not mandatory. The Board resolution approving the appointment of CS / KMP would suffice the requirement. The appointment letter may contain terms and conditions specific to a Commpany, which is not required to be given into public domain. Also, Nomination & Remuneration Committee is empowered only to recommend appointment (Sec 178(2) of the Act) and decision of the Board would be final.

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ACS Parul Rawat (Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8) (218 Points)
Replied 20 February 2016

It is not Mandatory, but it is attached for good corporate governance.

Sarada Bhamidipati (CS) (58 Points)
Replied 20 February 2016

I was responding to whether it is not mandatory or not. Also practically, am not sure how many company secretaries would want to have their appointment terms and conditions in public domain, although the remuneration particulars would be available in Director's report at the end of the financial year.