The Hindu Business Line : ICSI permits members to take up other activities

TO help Indian company secretaries compete with multinationals entering the country by offering single-window services to the corporate houses, the Central Council of Institute of Company Secretaries of India (ICSI) has amended the Regulation 168 of Company Secretaries Regulations 1982 removing all traditional conditions imposed on the company secretaries that restricted them from taking up other activities while practising.

Describing the move as a `major boon to the Indian company secretaries profession', the ICSI President, Mr R. Ravi, said the step was part of the institute's strategy to corporatise the profession.

Addressing newspersons here on Thursday, he said, "the Council at its recently held meeting in New Delhi has accorded general permission to its members in practice to become non-executive director/promoter/promoter director/subscriber to the memorandum and articles of association of a company, the objects of which include areas that fall within the scope of the profession of company secretaries irrespective of whether or not the practising member holds substantial interest in that company."

The Council has also given the okay to members to hold similar positions in a company that is engaged in any other business or occupation provided that the practising member does not hold substantial interest in the company.

"The Council in its resolution defined the term `non-executive director' as to mean an ordinary director who is required to attend the meetings of the board or its committees only, not paid any remuneration except the sitting fees for attending the board/committee meetings and any remuneration to which he is entitled as ordinary director, and devoting his time for the company only to attend meetings of the board or committees, thereof, and not for any other purpose," Mr Ravi said.

Further, apart from a decision to allow its members to take up teaching assignment with any organisation apart from the coaching organisation of the institute, the Council has also permitted its practicing secretaries to take up the job of recovery consultants in banking sector. This would enable thousands of practising company secretaries to offer effective recovery services to the banks, he said.

"All these have been demands pending for years with the Central Council of ICSI. We expect the relaxations to enable a number of practising company secretaries to float single-window shops and effectively compete with the multinational firms," Mr Ravi said.

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