ALL INDIA FEDERATION OF TAX PRACTITIONERS has made a representation to Hon’ble Union Minister for Finance and Corporate Affairs and requested to Increase monetary limit for appointment of Company Secretaries from existing Rs. 5 Crore to Rs. 20 Crore at earliest As the limit of Rs 5 Crore Paid up capital was fixed more than 10 years ago i.e. w.e.f. 15-03-2009. Full Text of the representation is as follows:-
ALL INDIA FEDERATION OF TAX PRACTITIONERS
Head Office 215, Rewa Chambers, 31, New Marine Lines, Mumbai 400020
Email aiftpho@gmail,com Phone 022-22006342/ 49706343
25th June, 2019
To,
The Hon’ble Union Minister for Finance and Corporate Affairs, North Block,
NEW DELHI-110001
Respected Madam,
At the outset we convey your honour our Congratulations on becoming the Hon’ble Union Minister for Finance and Corporate Affairs. We would like to make the following recommendations for amendment in the Companies Act, 2013:
Requirement of appointing Company Secretary as per Section 383A : Section 383A was introduced in the Companies Act, 1956 by enactment of the Companies (Amendment) Act, 1974 which came into effect from 1st February, 1975. Accordingly, every company with paid up share capital of Rs. 25 Lac or more (at that time) was required to appoint a whole-time secretary. If any such company comprised only two directors, neither of them could be the secretary of the company. The said provision was subsequently amended by the Companies (Amendment) Act, 1988 which came into force from 1st December 1988 to empower the Central Government to prescribe the limit of paid-up capital for appointment of company secretary from time to time.
W.e.f. 15th March 2009 the limit of Rs 2 Crore Paid up capital was enhanced to Rs. 5 Crore vide Notification.
In this connection it may be noted that in 2013 when new Companies Act, 2013 was introduced, then initially Rs. 10 Crore Paid up capital was prescribed but after representation from some quarters, the said limit was fixed at a reduced amount of 5 Crores.
Problems : The Companies are facing great difficulty in getting whole time company Secretaries due to paucity and they are demanding huge remuneration taking advantage of scarcity. Companies are unable to upload INC Form 22A prescribed under the Companies Act, in absence of availability of whole time Company Secretary. The total number of companies having paid up share capital of 5 crore and more were 27785.as on 31st December,2014 which has substantially increased in last 5 years. In 2014 there were 15364 Private companies and 12421 Public companies having paid up share capital of 5 crore & more. The total number of companies were 27785.The current figure of companies having paid up capital of Rs.5 crore or more is estimated at more than 44,000. Majority of them are in practice.
Recommendation : As the limit of Rs 5 Crore Paid up capital was fixed more than 10 years ago i.e. w.e.f. 15-03-2009, in view of the difficulties being faced by Companies, the limit should be revisited and enhanced to Rs. 20 Crore at earliest.
Kindly consider the above suggestions. We assure your honour of our full co-operation in encouraging Corporates to make proper compliance.
| Dr Ashok Saraf President, AIFTP drashoksaraf@amail.com |
Narayan Jain Co-Chairman Direct Taxes Committee npjainadv@gmail.com |
Download Representation in PDF Format to Increase monetary limit for appointment of CS
This is completely a bullshit said by federation they only want to get degrade the prestigious professional like CS. If limit increases then no one will be interesting in the Course and it will getting worst and look at the market conditions.
I don’t why they made this type of Recommendation,Govt is seeking governance from cos ,I have seen many cos in small cities where lack of corporisation, even though they are appointing CS who can very well manage day-to-day corprate affairs ,and make it compliant ,And I also know one FCS who is getting only 20,000/- Month ,Is he overpaid ?
These all Recommendations are just due to jealousy by other professional,beacuse their name is not explicitly incldue in KMP!!
Huge remuneration? it should be noted that the remuneration paid to qualified company secretary is still below the average and if the Company is not getting a CS is because they are into non compliance or have fixed limit of remuneration way below the average.
Huge remuneration? it should be noted that the remuneration paid to qualified company secretary is still below the average and if the Company is not getting a CS is because they are into non compliance or have fixed limit of remuneration way below the average.
We should also make urge to icsi to look into it and simultaneously make recommendations to mca. I have posted it on fb tagging our present president of icsi and many others. I have already put this into their kind notice let’s see if they act and refrain such malicious recommendation of whosoever!!!!!
Let the MCA put a restriction on the CA’s that they should not involve in handling the secretarial related works. Remove them from attesting their signatures in Spice and other forms. The company secretary can only certify it. They can very well concentrate on signing the BS and other related stuff.
They are looking for the opportunities of CA rather for CS. As they know if limit increases CA will get more secretarial work from small companies if there is no CS appointment in the company. And if we suppose to increase the limit but there should be other crateria like turnover/net-worth for appointment of CS.
And meanwhile ministry should ask the questions from federation, which is making such useless representation on the bases of old and baseless data.
They are looking for the opportunities of CA rather for CS. As they know if limit increases CA will get more secretarial work from small companies if there is no CS appointment in the company. And if we suppose to increase the limit but there should be other crateria like turnover/net-worth for appointment of CS.
And meanwhile ministry should ask the questions from federation, which is making such useless representation on the bases of old and baseless data.
Instead of putting paid up capital criteria they should have put Networth or Turnover, our comapny 50 Cr Paid capital, networth negative, no business can I appoint CS? ridiculous
We filed Form DIR12 for appointment of KMP on 11.06.2019 ( i.e. prior to the last date of filing of Form INC 22 ACTIVE , which was 15.06.2019) ,form DIR12 was submitted and SRN was generated , we paid the amount under Pay later mode.But the MCA system showed payment status as Not Paid. next day we again paid the amount. Amount was debited from our accounts but even after expiry of 48 hours and till date the Status is ‘Not Paid’, again option to cancel the SRN was inactivated for which we were unable to file fresh Form , for this reason , we also failed to file Form INC 22 ACTIVE, as the appointment of KMP is mandatory for the Listed Companies prior to file Form INC22 ACTIVE. As a result status of our company changed to ‘Active non Compliant’. We sent several mails, letters, made Complaint in MCA Portal ( status of which is still ‘QUEUED’, Talked to MCA helpline without having any result.
Now my question is if MCA cancel the above SRN , can we submit a fresh Form DIR 12 for appointment of KMP and can thereafter file Form INC22 Active with additional fee. My biggest nightmare is that MCA will not allow to file fresh Form DIR12 as status of our Company has changed to ‘Active non compliant’ and on the other hand when we will try to file Form INC 22 Active , the Form will not open due to non appointment of KMP. Please advise.
MCA should think of reducing the limit from 5 crore to 1 crore for appointing company secretary , market conditions are worse these days and if proposal be accepted there will be huge loss to many cs professionals.
“…….Majority of them are in practice.” Really?According to ICSI Annual Report 2017-18, total No. of Members were around 40448(excluding those residing abroad, whose name had been removed, who expired etc… ). Certificate of Practice holders were 10246.
“….they are demanding huge remuneration …”. Again, Really? The word “huge” needs explanation. Anyway, Company Secretaries are not the only one demanding huge remuneration. There are other professionals too who demands huge remuneration just for signing documents. So there are people who are not happy because Company Secretaries earn huge remuneration.
Regarding Form INC-22A, limits etc…, these are governed by appropriate laws which are not made arbitrarily. If someone thinks that appointment of CS shall only be done by companies having paid up capital of their choice so as to lessen the burden of companies, then they shall also consider other matters like auditing, signing etc… and think about bringing that also within limits.
In fact this is very cruel joke – huge remuneration. This article has been written to skip compliance of act / rules because CS will guide properly as per act/ rules.
Hahaha !! What a joke !! Huge remuneration !! Only for filling form INC-22A, you are requesting to the Ministry to increase the monetary limit ?? Are you mad !! please get a life.
I also request Hon’ble Ministry to avoid these types of Nonsense and their bullshit.
DEAR MR PROFESSIONAL PLEASE LET THE ICSI KNOW ABOUT THE HUGE OPENINGS SO THEY WILL NOTIFY THEIR MEMBERS AND THE SALARY PAID TO CS IS MUCH MUCH LOWER THAN OTHER PROFESSIONALS.
THERE IS NO SCARCITY FOR CS ,THERE ARE MANY OUT THERE WORKING IN DIFF DOMAIN BEING A CS DUE TO THE KIND OF SALARY FIXED BY COMPANIES.
SOME HAVE NOT EVEN TAKEN MEMBERSHIP NUMBERS AND JUST GRADUATED AND WORKING IN DIFF DOMAIN AFTER LOOKING AT THE PAY SCALE FOR WHOLE TIME CS.
PLEASE DO A GOOD GROUND CHECK AND THEN DO SUBMISSIONS .
I agree with Jivitha, This is totally ridiculous demand instead of promoting good governance, they are supporting to those who are not complying with laws.
I think federation is not aware about the market. so, i request federation please aware about the market and then write representation. no need to take popularity on such kind of representation
Please support profession.
The gentle man saying huge remuneration, just ask him about the responsibility of cs in any origination. And what is the definition of huge remuneration, as a professional he is not supposed to use this type of language.
Huge remuneration.. joke of the day now. it is a request to federation to just certain a minimum salary for whole time company secretary so we can get justified salary for their profession. certainly it should be more than what we are getting in market.
PLEASE REFER THE ICSI ANNUAL REPORT 2017-18
IT CLEARLY MENTIONS THERE ARE 54385 CS MEMBERS IN INDIA ON 31.03.2018 (ADDITION OF APPROX 4,000 MEMBER FROM 31.03.2017)
BASIS THE ADDITION ON YEARLY BASIS, IT CAN BE ASSUMED THAT MINIMUM 3,000 MEMBERS WERE ADDED BY 31.03.2019
SO, INSTEAD OF COMPLAINING FOR FILINGS OF FORMS LIKE INC-22A, PLEASE DO PROPER COMPLIANCE AND HIRE CS. I CAN RECOMMEND A FEW CS WHO ARE LOOKING FOR JOBS.
THERE IS NO SCARCITY OF ABLED CS.
sir as per your article you mention professional demanding huge remuneration..kindly inform you i am working as an company secretary for listed company with salary rs 25000 p m..so please tell me were is huge remuneration i will get..please reply asap
This totally ridiculous, do u knw the market situation please are still not getting jobs and he is saying huge remuneration, please get awake and why he is affected with the CS appointment. He should focus on CA let CA work also shared with CS. we eagerly looking for this