Good news for CS Profession:

❖ Secretarial Audit

The Committee recognizing that secretarial functions are critical to efficient board functioning recommended that Secretarial audit may be extended to all material unlisted Indian subsidiaries. This is in line with the theme of strengthening group oversight and improving compliance at a group level.

❖ Disclosures Pertaining to Disqualification of Directors

The Committee felt that investors are often unaware whether the directors of the company have been debarred from acting as directors of a company.  Therefore, the Committee recommended that in the annual report, a certificate from a company secretary in practice be included providing that none of the directors on the board of the company have been debarred or disqualified from being appointed or continuing as directors of companies by the SEBI/MCA or any such statutory authority.

This bears significance particularly in the context of some of the recent ongoing industry issues.

❖ The Committee while defining senior management recommends that the term ‘senior management’ shall specifically include Company Secretary 

 

 

 

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