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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 Veda Textiles Ltd, the company secretary notes that the notice for the meeting was sent without following the applicable secretarial standard on notice. She records the lapse and informs the board. Which function under the Companies Act, 2013 is she primarily performing?

She is ensuring the company complies with applicable secretarial standards, a statutory function of the company secretary under section 205. Secretarial standards are those issued by ICSI and approved by the Central Government. Secretarial audit and regulating the profession are different roles.

  1. AEnsuring that the company complies with the applicable secretarial standardsCorrect
  2. BIssuing the secretarial audit report as a practising company secretary
  3. CRegulating the profession of company secretaries
  4. DApproving the Board's report on behalf of the directors

Explanation

Section 205(1)(b) makes it a function of the company secretary to ensure the company complies with applicable secretarial standards, which are those issued by ICSI and approved by the Central Government. Secretarial audit is done by a company secretary in practice, not the in-house secretary.

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