VIA urges ICSI to simplify compliances for SMEs

Source: The Hitavada      Date: 05 Jan 2018 12:23:15


Business Bureau,

Company Secretary Dr Shyam Agrawal, President of The Institute of Company Secretaries of India visited Vidarbha Industries Association (VIA) and had a discussion on various issues and policies governing the corporate sector and small and medium enterprises. Atul Pande, VIA President, urged that ICSI being a premier body to regulate the corporate sector should play pro active role in the corporate governance and ensure that the regulatory compliances are reduced for SME sector.

Under the existing laws, companies are required to file various documents from time to time and non filing attracts penalties. Hence, it is suggested that SMEs are required to file only one form for the compliances under the Companies Act, 2013.

VIA also raised the issue of compulsory appointment of Company Secretary in case of company having a paid up share capital of Rs 5 crore or more. This limit is too small to justify the appointment of full time Company Secretary for unlisted companies. Since the Companies Amendment Bill 2013 proposes to increase the limit to define small company from Rs 5 crore to Rs 10 crore, it is requested that this limit be raised to Rs 20 crore for non listed SMEs. Agrawal said that Company Secretary not only ensures that compliances under the Companies Act, but takes care of the compliances under other economic legislations as Principal Officer. “This ensure good governance, proper due diligence and help the company in its growth. So it is in the interest of the company to have a full time Company Secretary,” said Dr Shyam Agrawal.

Regarding the current issues of the directors disqualification notices issued by the Ministry of Corporate Affairs, it has created a lot of inconvenience to the existing directorship. It is suggested that it should be applicable for the new appointment, without affecting the existing directors.

During the discussion, Agrawal mooted the idea that if the forms and returns are filed on time under the Companies Act, 2013, no filing fees need to be paid. He said that under the other laws like, Income-Tax, GST etc, no filing fees are required if the return are filed in time. Similar provisions be made applicable under the Companies Act. Penal provisions are already there for defaulters for non filing of documents. This will encourage the compliances and Practising Company Secretaries may be helpful to the trade and industry for its timely compliances.

ICSI President also touched upon various amendments proposed in the Companies Amendment Bill 2017 to strengthen the corporate governance standard, to improve ease of doing business in the country and initiate strict action against the defaulting companies. At the outset Pandey welcomed Dr Agrawal by offering flower bouquet. Present were Omprakash Bagdia, Vice-President of VIA, CS Ashish Garg, Central Council Member of ICSI, CS Pravin Soni, Secretary, WIRC of ICSI, CS Chanchal Loya, Chairperson of Nagpur Chapter, CS Piyush Kataria, CA Sachin Jajodia and members of VIA and ICSI.