OK. I agree with the members that the threshold limit should not be increased. But at the same time this is also true that there is a shortage of Company Secretaries in India and the gap has to be filled. As per me there should be the following provisions
1. The Law/ Rule should provide that
a) All public Limited Company having a paid capital of 2 crores or net worth of 5 crores in any of the last three years or turn over of 50 crores in any one of the last three financial year or a share holder base of more than 50 in any of the last three year shall appoint a full time Company Secretary.
b) All private Limited Company having a paid capital of 5 crores or net worth of 10 crores in any of the last three years or turn over of 100 crores in any one of the last three financial years shall appoint a full time Company Secretary.
c) All listed Company shall appoint a Full time Company Secretary.
How ever if any of the above mentioned company can not appoint full time Company Secretary due to shortage of supply of CS in the market or due to poor financial condition they have to seek specific permission from the ROC and to appoint one or more firm of Company Secretaries / Practicing Company Secretary on retainer ship basis who at the end of every financial year shall submit a Secretarial Audit Report to the Share holders of the Company which will form a part of the Annual Report.
Provided a Practicing Company Secretary can not take more than 10 retainer ship.
2. All others Companies not covered above and having a paid up capital of 5 lac or more shall obtain compliance Certificate from PCS.
This is the high time that the Institute should take initiative and pursue the MCA to incorporate such provisions in the law and we, the members have to pursue this matter to the Institute. I propose that the members of this group should make a formal representation and then send it to the institute on behalf of all the other members of this group. The representation shall invariably contain the name and membership number of the members of this group. The copy of that representation should also be forwarded to the MCA, Ministry of Law and Justice, Ministry of Finance, Reserve Bank of India and SEBI.
May I take this opportunity to request any member of this group to come out and prepare a draft of the formal representation and circulate the same for the other members view/ input.
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