Secretarial audit for bigger companies
(1)
Every listed companylisted company and a company belonging to other class of companies as may be prescribed shall annex with its Board’s report made in terms of sub-section ( 3 ) of section 134section 134, a secretarial audit report, given by a company secretary in practicecompany secretary in practice, in such form as may be prescribed.
(2)
It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company.
(3)
The Board of DirectorsBoard of Directors, in their report made in terms of sub-section ( 3 ) of section 134section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section ( 1 ).
(4)
If a company or any officerofficer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be liable to a penalty of two lakh rupees punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
Notes, amendments & references (3)
Refer Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014.To view the rule, Click Here
Refer rule 9 and Form No. MR-3 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014. To view the rule, Click Here
Substituted vide Companies (Amendment) Act, 2020 dated 28.09.2020 with effect from 21.12.2020. To view the Act, Click Here . To view the commencement notification, Click Here .