Changes in the eligibility criteria of ‘Appointment of Whole-time Company Secretary’ and ‘Secretarial Audit’

1) Compulsory appointment of Company Secretaries in companies: From 01st April, 2020, every listed company, every other public company and private company having a paid-up share capital of Rs. 10 crore or more shall have a whole -time company secretary. Previously, every company which has a paid-up share capital of Rs. 5 crore or more was required to appoint whole -time company secretary.

2) Secretarial Audit Report: Earlier only public companies having a paid-up share capital of Rs. 50 crore or more; or turnover of Rs. 250 crore or more were covered under the Secretarial Audit criteria. Now in addition to this, every company (including a private company) having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 crore or more shall also need to get Secretarial Audit Report from a Company Secretary in Practice.

Note: Amendment also provides that the paid-up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.