The Central Government in exercise of the powers conferred under Section 642 and Section 383A of the Companies Act, 1956 has amended the COMPANIES (APPOINTMENT AND QUALIFICATIONS OF SECRETARY) RULES, 1988 vide Notification No. G.S.R. 11 (E), dated 5-1-2009.
The amendment seeks to enhance the paid-up capital requirements for companies compulsorily required to appoint a whole time secretary to “five crore rupees”.
Under the amended rules a company having a paid up share capital of two crore rupees or more but less than five crore rupees may appoint any individual who is a member of the Institute of Company Secretaries of India as a whole-time secretary to perform the duties of a secretary under the Companies Act, 1956.
Further, where a company has appointed a whole-time company secretary, possessing the qualification of membership of the Institute of Company Secretaries of India, such a company is not required to obtain a certificate from a secretary in whole-time practice under rule 3 of the Companies (Compliance Certificate) Rules, 2001.
The said amendment shall come into force from 15th March, 2009.
