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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

Arjun Pharma Ltd's company secretary notices that the Board meeting notice was not issued in line with the applicable secretarial standards. Which statement best reflects the company secretary's statutory function under the Companies Act, 2013?

The company secretary must ensure the company complies with applicable secretarial standards. These mean standards issued by the Institute of Company Secretaries of India and approved by the Central Government. The function is a statutory duty and does not depend on a Board request, and unapproved standards do not qualify.

  1. AEnsure the company complies with the applicable secretarial standards, which are those issued by ICSI and approved by the Central GovernmentCorrect
  2. BEnsure compliance only with standards issued by the Ministry of Corporate Affairs without ICSI involvement
  3. CAdvise on secretarial standards only if the Board specifically asks
  4. DEnsure compliance with any standards issued by ICSI, whether or not approved by the Central Government

Explanation

Section 205(1)(b) makes it a function of the company secretary to ensure the company complies with applicable secretarial standards. The Explanation defines them as standards issued by ICSI and approved by the Central Government, so approval is required and ICSI is the issuer.

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