Amendment To Rule 8A And Rule 9 of Companies (Appointment And Remuneration of Managerial Personnel) Rules, 2014 by Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020

Now Rule-8A and Rule-9 is read as follows:

1. Rule 8A: Earlier- A company other than a company covered under rule 8 which has a paid up share capital of five Crore Rupees or more shall have a whole-time company secretary.

Amended Rule 8A- Every Private Company having paid up share capital of ten crore rupees or more shall have a whole -time company secretary

2. Rule 9: Provision related to Secretarial Audit is now applicable on following Companies:

(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; or

“(c) Every company having outstanding loans or borrowings from banks or public financial institutions of one hundred Crore rupees or more.”.

(2) The format of the Secretarial Audit Report shall be in Form MR.3.

“Explanation :- For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.”.


1. RULE-8A: Earlier limit for appointment of Company Secretary in Private Companies or other companies is having paid up share capital of rupees 5 crores or more but, after amendment it is raised to rupees ten crore or more , it will leads to unemployment of employed Company Secretary in private companies.

2. Rule 9: Amendment increases the scope of Secretarial Audit to wider companies.

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December 2020