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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Empowerment of the Company Secretary Profession

A body named 'Corporate Secretaries Regulatory Council' announces that it will frame binding rules for all Company Secretaries in India and discipline them. Its name is clearly different from the ICSI's. Under Section 25(1) of the Company Secretaries Act, 1980, which analysis is correct?

The body commits an offence under Section 25(1)(c), which independently prohibits anyone from seeking to regulate in any manner the profession of Company Secretaries. The clauses of Section 25(1) operate separately, so a name that differs from the ICSI's, or no diploma being awarded, is no defence.

  1. ANo offence, because its name does not resemble the Institute's name
  2. BOffence only if it awards a diploma
  3. COffence under Section 25(1)(c), as it seeks to regulate the profession of Company Secretaries, irrespective of name similarityCorrect
  4. DOffence only under Section 187 of the Companies Act, 2013

Explanation

Section 25(1)(c) separately prohibits any person from seeking to regulate in any manner the profession of Company Secretaries. The clauses are independent, so a dissimilar name or absence of a diploma does not save the body. Section 187 of the Companies Act concerns investments held in a company's own name and is irrelevant.

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