The Hindu Business Line : Review decision on appointment: Co secretaries

WITH a new dispensation at the Ministry of Company Affairs and the Institute of Company Secretaries of India (ICSI), company secretary professionals are looking forward to better days.

The ICSI has requested the Ministry to reconsider its decision to exempt a certain category of companies from appointing a whole-time secretary. The Ministry's move to ease the norms for appointing company secretaries for certain categories of companies had irked professionals. In a changing corporate environment, CS professionals are looking for more job opportunities and a level-playing field with other professions, they said.

In October 2003, the Government had issued a notification that companies with a paid-up share capital of Rs 2-5 crore and a registered office in towns with population of less than a lakh will neither be required to get a compliance certificate from a certified company secretary nor necessarily be required to appoint a company secretary. A company falling under this category could appoint any individual who possesses any of the qualifications specified in the Rules for appointment and qualification of a secretary, as its whole-time secretary.

Sources said that the Ministry, in response, has informally asked for the number of companies that fall under the category and the extent of job losses suffered, if any. It is very difficult for the institute to furnish this information, sources said.

Voicing concerns arising due to the amendment, they pointed out that the term `corporate office' has not been defined in the Companies Act. This could lead to some companies circumventing the facts to suit their convenience.

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