P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
11 June 2014Now every company having paid up share capital of Rs.5 crores or more will be required to have whole time CS.
Thanks
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 11 June 2014
Mohit Aggarwal
(FCA, ACS)
(73 Points)
Replied 11 June 2014
as per rule 8A, Private company above 5 cr., they need to appoint a whole time CS. Whether it will also appointed as KMP. Whether now Pvt. Co. also fall under to appoint KMP.
Second Question: if any company due to financing difficulty is not able to appoint CS, what will be consequences.
Samir
(Account Head)
(207 Points)
Replied 11 June 2014
Is it applicable with immediate effect that means we have appoint CS with 60days or applible from next year 01-04-2015
Thanks
Mohit Aggarwal
(FCA, ACS)
(73 Points)
Replied 11 June 2014
Hi Samir,
The amendment is effective from 09.06.2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 11 June 2014
Pl refer article on the amendment by Shri Vinod Kothari:
https://india-financing.com/images/Articles/Identifying_KMPs_in_company.pdf
Mohit Aggarwal
(FCA, ACS)
(73 Points)
Replied 12 June 2014
Thanks sir for sharing this interesting article.
Pls also provide the soultion of second question
if any company due to financial difficulty is not able to appoint CS, what will be consequences.
RoHaN k
(CA & CS)
(308 Points)
Replied 12 June 2014
“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.”
That means , CS appointed on basis of 5 cr capital will not be a KMP , he will just be compliance Officer , but as per Rule 8 , Such CS will be designated as KMP when Paid up reaches 10 Cr and above.
Mohit Aggarwal
(FCA, ACS)
(73 Points)
Replied 12 June 2014
Hi Rahul,
CS is always be included in KMP if he is under employment as CS.
As per Rule 8A, company do not need to appoint any other KMP, only CS is required to be appointed.
RoHaN k
(CA & CS)
(308 Points)
Replied 13 June 2014
Mohit sir ,
If CS is always KMP , Then there is a confusion , whether such company having paid up cap between 5Cr to 10Cr...are required to appoint CS as KMP , but not other KMP , that means such company are not worth of appointing other KMPs ?
Which is not convincing , thats why its so interpreted that , CS till 10 cr will be compliance officer.
Please share your views.
Thanks
CAclubindia
