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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

Ananya, a member of the Institute, is asked by a client whether the Company Secretaries Act, 1980 applies to her work in Kerala and from when it took effect. Which statement is correct as per the Act?

The Act extends to the whole of India and came into force on 1 January 1981, the date appointed by Central Government notification. It is not limited by region, and 2006 refers only to an amendment, not commencement.

  1. AIt extends to the whole of India and came into force on 1 January 1981 by notificationCorrect
  2. BIt extends only to States where the Institute has a regional council and came into force on 1 January 1981
  3. CIt extends to the whole of India and came into force on the date of its passing without notification
  4. DIt extends to the whole of India and came into force on 8 August 2006

Explanation

Section 1 says the Act extends to the whole of India and comes into force on a date notified by the Central Government. The footnote records 1st January 1981. The option linking it to regional councils is wrong because there is no such territorial limit, and 2006 is only an amendment date.

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