Amendment on Companies (Appointment & remuneration of Managerial Personnel) Rules, 2014
MCA vide notification dated 3rd January 2020 has made few important amendments in the provisions of Companies Act, 2013. These are as follows:
- Requirement of whole-time company secretary – The limit of paid up capital has been increased from Rs. 5 Crore to Rs. 10 Crore. There is no need to appoint a whole time company secretary in any company until the paid up capital reaches Rs. 10 Crore or more.
- Secretarial audit applicable to private companies – Now, every company having outstanding loan of Rs. 100 crore or more from bank and public financial institutions is required to conduct a secretarial audit for the relevant financial year. Earlier, the secretarial audit was not applicable to private companies. Now, the private companies are covered under this scope.
Note: Please note that the above provisions are applicable from the financial year commencing on or after 1st April 2020.