Why company secretaries were sad?

Recently after introduction of companies act 2013, company secretaries were not happy because law didn't require every company to have CS.

But my doubt is that, is it necessary that company act should have provision for companies to appoint CS. If the act doesn't mandate for a company to have CS then still it would require someone to comply with legal requirement and CS is best for that. So what does it matter what act says about CS. Please throw some light on it. 

 

Replies (3)

You know who is better than CS for Compliances for a company? A CS who is also a CA or Law graduate. If there is no requirement for appointment for CS in a company then it will mean that for complaince purposes companies will appoint professionals who can take additional responsibilities apart from their work. Hence an Accounts Manager may be given responsibility for Companies Act compliances too or it can be outsourced to Auditor of the company with slight increase ion cost. Whereas a full time CS will cost a lot more.

 

Hence the CS fraternity is unhappy with this new rule just like CA fraternity is unhappy with Direct Tax code.

Please consider this There are around 10 lacs active companies in india. Out of which 7% i.e. 70,000 are public ltd. Almost every public co. will have turnover of above 10 crore. So even as per old KMP provision there is need of 70,000 company secretaries and there are only 30,000 CS in market. And second thing is that this 70,000 CS requirement is for KMP position. While companies require junior CS also to work under KMP CS. Then there are opportunities in practice also. So why they were doubting existance of CS profession. Even as per old KMP provision future of CS is good.

I think you have the wrong information. The deciding factor is not turnover,it is Paid up share capital and there are hardly 7000 companies in India fulfilling that criteria.

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