‘Secretarial Audit mandatory under Companies Act, 2013’

Source: The Hitavada      Date: 30 Dec 2017 10:05:33


Business Bureau,

THE Institute of Company Secretaries of India (ICSI) is taking various steps for rigorous capacity building of its members and students. CS (Dr) Shyam Agrawal, President while addressing the media on Friday, outlined the major achievements and initiatives of the Institute and briefed the media about the important role played by the company secretaries in the corporate sector. He noted that Secretarial Audit had been made mandatory under the Companies Act, 2013.

Elaborating about the ‘Secretarial Audit’, he said: “It is a process to check compliances made by the company under
the corporate law and other laws, rules, regulations, procedures, etc.”

Appreciating the move, Agrawal said: “Periodically inspecting the records of company gives exact information about the growth of the company.” Agrawal informed that the Institute had also revised the Secretarial Standards on Meetings of the Boards of Directors (SS-1) and General Meetings (SS-2) which was released by Arun Jaitely, Union Minister for Finance and Corporate Affairs, recently.

“The revised SS-1 and SS-2 shall be applicable to all the companies (except the exempted class of companies) w.e.f. October 1, 2017 and accordingly all Board Meetings (including meetings of committees of Board) and General Meetings in respect of which Notices are issued on or after October 1, 2017 need to comply with the revised SS-1 and SS-2.” The Malaysian Association of Company Secretaries (MACS) had adopted Secretarial Standards issued by ICSI as the benchmark in development of their Secretarial Standards, Agrawal informed.

He said: “ICSI has launched model governance code for meetings of ‘Gram Panchayats’. The Institute has taken various efforts and measures for the advancement of the governance in the corporate world as well as spreading the governance paradigm to the grass root level.”

He further informed that the company secretaries as governance professionals, had a substantial role to play in establishing, promoting and sustaining a transparent and accountable governance. The ICSI had come up with the ‘Corporate Anti-Bribery Code’ that supplemented the Government’s initiative towards building a corruption-free new India by 2022. This code was to be adopted voluntarily by the corporate sector.

Explaining about the various initiatives for students like free registration in CS Foundation/Executive Programme for the students of North East states and Jammu and Kashmir, ICSI Skill Development Programme for IT students, Merit Scholarship Scheme, CS Olympiad, etc. “CS is the course which has huge career potential and cost of the course is also very less, just about Rs 25,000. It can be opted after class 12 for three years and after any graduation for 2 years,” he said.
Also present were CS Ashish Garg, National Vice-Chairman, CS Praveen Soni, Secretary, WIRC, CS Chanchal Rathore, Chairperson, Nagpur Branch and other office bearers.