Skip to content

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

Bharat Agro Ltd's Managing Director argues that since the Company Secretary must report on compliance under Section 205, the MD and the Chairperson are now relieved of their own statutory duties on compliance. Is the argument correct?

The argument is wrong. Section 205(2) states that the provisions of Sections 204 and 205 do not affect the duties and functions of the Board, chairperson, managing director or whole-time director under the Act or any other law, so their responsibilities remain intact.

  1. ANo, Section 205 does not affect the duties and functions of the Board, chairperson, managing director or whole-time director under the Act or any other lawCorrect
  2. BYes, once a company secretary is appointed, the duties of the managing director stand transferred to him
  3. CYes, but only for the duties relating to secretarial standards
  4. DNo, because the Chairperson alone retains the duties while the managing director's duties shift

Explanation

Section 205(2) provides that Sections 204 and 205 do not affect the duties and functions of the Board of Directors, the chairperson, the managing director or a whole-time director under the Act or any other law. Hence the company secretary's functions are additional and do not shift their responsibilities.

Did you get it right without looking?

One question tells you little. A timed set on Empowerment of the Company Secretary Profession shows your real accuracy, how long you take and where you lose marks.

Practise Empowerment of the Company Secretary ProfessionFree diagnostic mock

More Empowerment of the Company Secretary Profession questions