Section 203 of Companies Act 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, necessitated that every listed company and every other public company having paid-up share capital of Rs 10 crores or more to appoint the Company Secretary in whole-time employment. All Private companies and such public companies having Paid-up share capital lower than Rs 10 crores were not required to appoint a Company Secretary.
Such provision was very much in debate as it limited the role of Company Secretary in companies having paid up share capital of less than Rs. 10 crores.
Therefore after much deliberation and representation MCA (Ministry of Corporate Affairs) vide the Notification No. G.S.R. 390(E) on 9th June 2014 in Official Gazette amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 regarding appointment of Company Secretary. As per the aforesaid notification now, companies having paidup capital of Rs 5 crores or more has to mandatorily have a Company Secretary in whole time employment.
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