Recent Notification: Amendment in Rule 8A of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (In-Nutshell)
Recent Notification by MCA has given a Shock to entire CS Fraternity as it has put-down many job opportunities for Company Secretaries. But at the same time there have been a slight increase in opportunity for a Practicing Company Secretary in scope of Secretarial Audit. MCA with vide notification dated January 03, 2019 has amended Rule 8A and 9 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 regarding Appointment of Whole Time Company Secretary and Scope of Secretarial Audit for Companies.
For Better Understanding I have covered Amendment under Rule 9 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in a different Article and in this article I have talked about Rule 8A of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Interpretation of Old Provision:
Section 203 read with Rule 8 and Rule 8A of Companies (appointment and managerial personnel) Rules 2014, as amended provides that Every Listed company or Public company having paid up share capital 10 crore or more or A Company other than covered under rule 8 which has paid up share capital of 5 crore or more shall have a whole time company secretary.
Interpretation of New Provision:
Section 203 read with Rule 8 and Rule 8A of Companies (appointment and managerial personnel) Rules 2014, as amended provides that Every Listed company or Public company having paid up share capital 10 crore or more or Private company having paid up share capital of 10 crore or more shall have a whole time company secretary.
Effect of Amendment:
Earlier, Every Company (Private Company or Unlisted Public Company) having Paid Up Share Capital of INR 5.00 or more have to appoint Whole Time Company Secretary, and
NOW, Every Company (Private Company or Unlisted Public Company) having Paid Up Share Capital of INR 10.00 Crore or more have to appoint Whole Time Company Secretary.
That means limits have been increased to double. Due to which it is estimated that as many as 11,532 (approx.) Job Positions for Company Secretary in Employment is at Risk, As appointment of Whole-time Company Secretary is no more Mandatory.
Source- Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020
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Kindly give extract
Under Rule 8 A in Rule 9 in Sb section Rule (1)
after clause(B) at the end of the word or shall be inserted