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

At a Board meeting of Sundaram Textiles Ltd, the directors ask the company secretary what her statutory function is regarding the Secretarial Standards. Which statement correctly reflects the Companies Act, 2013?

The company secretary's function includes ensuring that the company complies with applicable secretarial standards. These are the standards issued by ICSI and approved by the Central Government. They are not optional guidance, nor issued by SEBI.

  1. AShe must ensure that the company complies with the applicable secretarial standards issued by ICSI and approved by the Central GovernmentCorrect
  2. BShe may decide whether the company follows the secretarial standards, as they are advisory
  3. CShe is responsible only for filing the standards with the Registrar
  4. DSecretarial standards are issued by SEBI and are outside her functions

Explanation

Section 205(1)(b) lists among the company secretary's functions ensuring that the company complies with applicable secretarial standards. The Explanation defines these as standards issued by ICSI and approved by the Central Government. SEBI is not the issuer, so the last option is wrong.

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