CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Processes through Secretarial Standards
At Kaveri Agro Ltd, the Chairman asks the CS to skip the secretarial standards on notice of Board meetings because the directors are friendly and informal. Under Section 205, which statement is correct?
The CS must ensure the company complies with applicable secretarial standards. The Chairman cannot waive this, and the standards cover Board meetings as well as general meetings, so informality among directors is no excuse.
- AThe CS must ensure the company complies with applicable secretarial standardsCorrect
- BThe CS may waive the standards if the Chairman instructs
- COnly the Board, not the CS, has any role regarding standards
- DThe standards apply only to general meetings
Explanation
Section 205(1)(b) makes it a CS function to ensure that the company complies with applicable secretarial standards. Section 118(10) also requires observing standards for general and Board meetings. A Chairman's instruction cannot waive this, so the waiver option is wrong.
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