NORMS RELAXED FOR APPOINTMENT OF COMPANY SECRETARIES
The Government in the Department of Company Affairs
(DCA) has issued a notification amending the Companies (Appointment
and Qualifications of Secreatary) Rules, 1988 to relax the provisions
governing appointment of whole-time Company Secretaries in companies
with immediate effect. Accordingly, it becomes mandatory for companies
with a paid up capital of Rs. 2 crores and above to appoint a
whole-time Company Secretaries against the existing provisions
requiring whole time Company Secretaries in companies with a paid
up capital of Rs. 50 lakhs and above.
The notification has been issued under clauses
(a) and (b) of sub-section (1) of Section 642 read with Section
383 A of the Companies Act, 1956.
This is the third amendment effected in the Companies
(Appointment and Qualifications of Secretary) Rules, first promulgated
in 1988, followed by amendment in April 1993 when the paid up
capital was raised from Rs. 25 lakhs to Rs. 50 lakhs in Companies
for mandatory appointment of whole-time qualified Company Secreataries.
