The Institute of Companies Secretaries of India (ICSI) is confident that certain changes it had sought in the Companies Act, 2013, including the one making appointment of company secretary mandatory for all companies with a paid up capital of Rs.5 crore and above, will be made soon.
The institute had suggested the changes for compliance and governance in the corporate sector.
ICSI President R. Sridharan, addressing a press conference here on Friday, said under the Companies Act, 1956, all companies, including private, with a paid-up capital of Rs.5 crore or more should have a company secretary. The Companies Act, 2013, said appointing a company secretary was mandatory only for listed companies and public companies whose paid-up capital is Rs.10 crore and above.
With the number of such companies being around 7,000, it effectively meant exclusion of 99 per cent of the companies. This did not go down well with the members resulting in the Institute approaching the Ministry of Corporate Affairs and the Minister.
He said another amendment the ICSI had sought was with regard to the secretarial audit.