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

A training firm, Prime Governance Academy, awards a 'Certified Corporate Secretary' certificate to its trainees, indicating competence in Company Secretaryship similar to that of an ICSI member. Under the Company Secretaries Act, 1980, what is the legal position?

The award is prohibited and punishable. Section 25 of the Company Secretaries Act, 1980 bars awarding any certificate or designation indicating competence in Company Secretaryship similar to an ICSI member. First conviction attracts imprisonment up to six months or fine of one to five lakh rupees, or both.

  1. APermitted, as long as the firm does not use the ICSI seal
  2. BPermitted, if the certificate is described as non-statutory
  3. CProhibited, and the offence is punishable with imprisonment and/or fineCorrect
  4. DProhibited, but only civil remedies are available

Explanation

Section 25(1)(b) bars any person from awarding a certificate or designation that purports to indicate a qualification or competence in Company Secretaryship similar to that of an ICSI member. Section 25(2) makes contravention punishable with imprisonment up to six months or fine of Rs 1 lakh to Rs 5 lakh or both on first conviction, so civil remedies alone are not the position.

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