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

Arjun, who has never been an ICSI member, prints visiting cards showing 'Company Secretary' and 'A.C.S.' after his name. Which provision is mainly attracted, and what is the first-conviction penalty?

Section 24 of the Company Secretaries Act, 1980 applies, because a non-member is using the designation Company Secretary and the letters A.C.S. On first conviction the fine may extend to Rs 1 lakh. Section 25 deals with misuse of the Institute's name or seal, not this conduct.

  1. ASection 25; imprisonment up to six months or fine of Rs 1 lakh to Rs 5 lakh
  2. BSection 24; fine which may extend to Rs 1 lakhCorrect
  3. CSection 204 of the Companies Act, 2013; penalty of Rs 2 lakh
  4. DSection 378X of the Companies Act, 2013; penalty of Rs 100 per day

Explanation

Section 24 punishes a non-member who uses the designation Company Secretary or the letters A.C.S. or F.C.S.; on first conviction the fine may extend to Rs 1 lakh. Section 25 targets use of the Institute's name or seal, awarding qualifications, or regulating the profession, so it is not the main fit here.

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