Secretarial Audit & Company Secretary In Practice

Secretarial Audit was initiated by MCA under section 204 of the Companies Act, 2013read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Secretarial Audit is a process by which the compliances with the provisions of various laws and rules/regulations/procedures, maintenance of books, records, etc., are duly checked by the independent practicing Company Secretary.The audit process ensures timely compliance and eliminates any un-intended non-compliance of various applicable rules and regulations by the company.

A Company Secretary in practice is a professional who is well-versed in matters of statutory, legal procedural, and practical aspects of laws applicable to companies (both listed and unlisted public and private companies). A strong knowledge base developed during the ICSI Course makes him a competent professional to conduct Secretarial Audit. As per subsection 1 of section 204, Secretarial Audit and furnish Secretarial Audit Report in form MR-3 can be conducted by the members of the Institute of Company Secretaries of India who are holding certificates of practice (i.e., PCS).

Limits for Applicability:

According to Section 204 of the companies act, 2013 the secretarial audit applies to the following companies:

The Report for the Secretarial audit shall be in Form MR-3 as prescribed under sub-rule (2) of rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by: CA Neetu Saini

AKGVG & Associates

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