CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
Aarav Mehta, Company Secretary of an insurer, is preparing a certificate on compliance with a regulatory requirement. He finds one instance of non-compliance by the claims department. What should he do?
He should disclose the non-compliance factually in the certificate or report and bring it to the board's attention so corrective steps follow. Integrity requires truthful certification, and false certification, backdating records or silently withholding the certificate would amount to professional misconduct.
- ACertify full compliance to avoid embarrassing the department
- BDisclose the non-compliance with factual details in the certificate or report and inform the board so corrective action is takenCorrect
- CLeave the certificate unsigned and say nothing
- DAsk the department to backdate the record to show compliance
Explanation
A Company Secretary must act with integrity and report facts truthfully. Certifying full compliance or backdating records would be professional misconduct, and silence prevents remedial action by the board.
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