Recently MCA amended the threshold limit for appointment of whole time Company Secretary via Companies (Appointment and Managerial Personnel) Amendment Rules, 2020.
As per amended Section 203 read with Rule 8 and Rule 8A of Companies (Appointment and Managerial Personnel) Rules, 2014 – Every listed company or public company having paid up share capital of Rs 10 crore or more or Private Company having paid up share capital of Rs 10 crore or more shall appoint whole time Company Secretary.
Earlier the limit was Rs 5 crore. This definitely limits the scope for CS especially who are in employment. There are thousands of companies in India that fall below the said bracket and hence the amendment would leave many CS unemployed. Responding to the said amendment, ICSI has submitted a representation to Ministry of Corporate Affairs (MCA).
In the said representation, ICSI has highlighted how CS holds paramount importance for the corporate world and its recognition in the eyes of SEBI and Companies Act.
Through this letter, ICSI has also reflected on the apprehension being caused by the notification in the minds of members and students.
ICSI has also put forward two suggestions before MCA requesting for amendment to be made.
Refer the representation here