In today’s business world, appointing a company secretary has become mandatory for certain types of companies. The appointment of a company secretary is not just a legal requirement, but it also plays a vital role in the smooth functioning of a company. In India, the Companies Act, 2013 mandates that certain businesses appoint a company secretary. But who exactly is required to appoint a company secretary, and why is this appointment mandatory?
In this Protree Academy blog, we will discuss who requires the mandatory appointment of a company secretary and why while answering these questions and providing an overview of appointing a company secretary.
As per the Company Act, the appointment of a company secretary is mandatory for companies that fall under the following categories:
- Public Limited Companies
- Companies with a paid-up share capital of Rs. 50 lakhs or more
- Companies with a turnover of Rs. 2 crores or more
Ensuring compliance with legal requirements and regulations is the primary purpose of mandatory company secretary appointment. A company secretary is responsible for ensuring that the company adheres to all the legal and regulatory requirements, including filing various forms and returns with the government, maintaining statutory registers and records, and ensuring that the company follows all the necessary corporate governance practices.
Appointing a Company Secretary
The appointment of a company secretary is made by the board of directors of the company. The company secretary can be a whole-time company secretary or a part-time company secretary. However, if the company has a paid-up share capital of Rs. 5 crores or more, then the company is required to appoint a whole-time company secretary.
A company secretary is a vital part of a company’s management team, and their role is not limited to just compliance-related tasks. They are also responsible for providing advice to the board of directors on various legal and regulatory matters, assisting in the conduct of board meetings and general meetings, and ensuring that the company follows all the necessary corporate governance practices.
In conclusion, the mandatory appointment of a company secretary is a legal requirement for certain types of companies, and it plays a crucial role in ensuring that a company complies with all the legal and regulatory requirements. The appointment of a company secretary is made by the board of directors of the company, and they can be a whole-time company secretary or a part-time company secretary. So, if you are running a company that falls under the categories mentioned above, it is essential to appoint a company secretary to ensure that your company runs smoothly and complies with all the necessary legal and regulatory requirements.
Protree Academy offers comprehensive training programs to help aspiring company secretaries gain the knowledge and expertise necessary to excel in this role. Our training covers all aspects of the company secretary’s role, including compliance management, corporate governance, and secretarial practices. With our training, you can gain the skills needed to succeed as a company secretary and take your career to new heights.