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

A private training firm, Nimbus Governance Academy, starts awarding a 'Certified Corporate Secretary Professional' certificate, advertised as showing competence in Company Secretaryship equal to that of an ICSI member. Its promoter is convicted for the first time under the Company Secretaries Act, 1980. Which punishment is within the law?

Awarding such a certificate contravenes section 25. On first conviction the punishment is imprisonment up to six months, or fine of at least Rs 1 lakh and up to Rs 5 lakh, or both. Harsher punishment applies only to subsequent convictions.

  1. AFine of Rs 1,000 only
  2. BImprisonment up to six months or fine of not less than Rs 1 lakh but up to Rs 5 lakh, or bothCorrect
  3. CImprisonment up to one year and fine of Rs 10 lakh compulsorily
  4. DOnly a penalty of Rs 2 lakh imposed by the Registrar

Explanation

Section 25(1)(b) bars awarding any certificate or designation purporting to show Company Secretaryship competence similar to an ICSI member. Under section 25(2), first conviction attracts imprisonment up to six months or fine of Rs 1 lakh to Rs 5 lakh, or both. The Rs 1,000 figure is the old pre-2022 fine, and one year with Rs 2-10 lakh applies to subsequent convictions.

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