Company Secretary in Practice: If you're a member of the ICSI and not currently employed, you can start practising once you get a Certificate of Practice from the Institute. The Companies Act of 2013 outlines various rules for Company Secretaries working with companies or firms.
This Act emphasizes the importance of Company Secretaries by offering two options for their involvement: as an employed Company Secretary or as a practising Company Secretary. This means Company Secretaries can have different roles depending on how they're connected to the organization.Also Check: Role of Company Secretary in Corporate Governance
Annual Return Filing:
The annual return serves as a comprehensive snapshot of a company's vital information as of the end of the financial year. For non-listed companies, this document requires signatures from a CS who is an employee and a director of the company. However, if the company hasn't appointed a CS in employment, the responsibility falls on a CS in Practice to sign it. In the case of listed companies, even if the annual return is signed by a CS in employment, it necessitates certification by a CS in Practice. This condition applies specifically to listed companies meeting certain criteria: (a) Paid-up share capital exceeding Rs.10 crores (b) Turnover surpassing Rs.50 crores These regulations underscore the importance of ensuring the accuracy and legality of financial disclosures, particularly for companies with significant financial operations.Secretarial Audit Report:
Secretarial Audit represents a comprehensive review aimed at verifying compliance with various legal provisions, including those outlined in the Companies Act. According to the Companies Act, 2013, both listed companies and certain other classifications of companies are mandated to submit a Secretarial Audit Report along with the Board Report. The certification of this report is entrusted to a CS in Practice. This requirement extends to companies meeting specific criteria: (a) Paid-up share capital exceeding Rs.50 crores (b) Turnover exceeding Rs.250 crores By subjecting companies to a thorough audit process, regulatory bodies aim to uphold transparency and accountability in corporate governance, thereby safeguarding the interests of stakeholders. While both CS employed within a company and those in Practice play pivotal roles in ensuring compliance and smooth operations, it's important to acknowledge that each comes with its own set of advantages and disadvantages. This dichotomy necessitates a nuanced understanding of their respective contributions and limitations within the broader regulatory framework. Elevate your professional competency in Company Secretarial practices through PW Company Secretary courses . Enroll now to embark on a journey towards becoming a proficient Company Secretary. Initiate your career advancement today!