Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020 notified by Notification dated January 03, 2019- Effective w.e.f 01.04.2020.
Rule 8A Pre-Amendment – Provided that all the companies not covered under Rule 8[1] and having a paid-up share capital of Five Crore Rupees or more shall have a wholetime company secretary.
Rule 8A Post-Amendment – Every private company which has a paid-up share capital of ten crore rupees, or more shall have a whole – time company secretary.”.
After amendment now following Companies mandatorily required to appoint a whole time Company Secretary-
1. Listed Company,
2. Unlisted Public Company having paid-up share capital of INR 10 Crore or more,
3. Private Company having paid-up share capital of INR 10 Crore or more.
Rule 9- Secretarial Audit- Pre-Amendment – Pursuant to Sec 204, every listed company and companies belonging to such other class shall annex a Secretarial Audit Report, given by a Practicing Company Secretary, with its Board Report. Such other class of company which are required to comply with this provision are given in Rule 9 of the Rules.
Such class of companies were: –
(a) Every public company having a paid-up share capital of fifty crore rupees or more, or
(b) Every public company having a turnover of two hundred fifty crore rupees or more;
Rule 9- Secretarial Audit- Post-Amendment – Pursuant to Sec 204, every listed company and companies belonging to such other class shall annex a Secretarial Audit Report, given by a Practicing Company Secretary, with its Board Report. Such other class of company which are required to comply with this provision are given in Rule 9 of the Rules.
such class of companies were: –
(a) Every public company having a paid-up share capital of fifty crore rupees or more, or
(b) Every public company having a turnover of two hundred fifty crore rupees or more;
(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.
Pros & Cons of Amendment
Pros –
1. Work for PCS will increase to some extent.
2. As we know that at this time there are very few CS who are in Practice after this most of CS will apply for Certificate of Practice,
3. To promote self-Independent Profession.
4. Prevention of name lending to increase the brand value of our Profession.
Cons –
1. Job opportunities will decrease
2. Fresher CS will face the lots of difficulties to get a Job.
3. CS already workings in the Private Companies from last few years will lose their designation and for them it will be very difficult situation to search for new job.
4. For most of people this question again will be – “Who is CS?”
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