Dear All,
Suppose a Private limited company has paid up capital of more than 5 crores and has appointed whole time company secretary.
Is this Company secretary required to sign the Balance sheet of Such Private company ?
Regards,
Vaibhav
vaibhav (CA & CS) (577 Points)
04 February 2012Dear All,
Suppose a Private limited company has paid up capital of more than 5 crores and has appointed whole time company secretary.
Is this Company secretary required to sign the Balance sheet of Such Private company ?
Regards,
Vaibhav
S.Rammalingham
(PCS training)
(48 Points)
Replied 04 February 2012
Yes, As per the Section 215(ii) of the companies Act, 1956,
Every BS and P&L shall be signed on behalf of the Board of Directors in the case of any other company by its manager or secretary, ifany, and by not less than two directors of the company one of whom shall be a MD where there is one.
Janani Subramanian
(Employed)
(151 Points)
Replied 04 February 2012
AS per Section 215(ii) The Balance Sheet and P&L by manager and secretary where ther is one is what the act says but as per Sec 383A every private limited company having a piad up capital exceeding Rs.5 crores and above shall have a whole time secretary in that case if the Balance Sheet and P&L of the said private limited company is not signed will that not lead to a violation??
S.Rammalingham
(PCS training)
(48 Points)
Replied 04 February 2012
yes it leads to default, however there is a defence available, see the provisions of 383A (1A)
Janani Subramanian
(Employed)
(151 Points)
Replied 04 February 2012
Yeah it says that the con pany and every officer o the company shall be punishable with a fine that many entend upto Rs.500/- for every day during the default.
vaibhav
(CA & CS)
(577 Points)
Replied 04 February 2012
Thanks to all ot you,
My next question is : Whether section 215 applies to private compaies also ?
If yes can anyyone suggest me the name of any private company which has paid up capital more than 5 cr and got the financials signed by the CS.
regards
vaibhav
S.Rammalingham
(PCS training)
(48 Points)
Replied 05 February 2012
yes, it is applicable private limited co , please go through the provisions its says any other company(other than the banking company)