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CS Professional · Drafting, Pleadings and Appearances · Art of Advocacy and Appearances

CS Meera, a practising company secretary, is told by a client that she may be proceeded against for conduct that is not listed in any Schedule to the Company Secretaries Act, 1980. Under the Act as given, which statement is correct?

The Director (Discipline) can still inquire into a member's conduct in other circumstances. Section 22 says misconduct includes Schedule acts or omissions, but it does not limit or abridge the Director's power under section 21(1) to inquire into any member's conduct.

  1. AOnly acts or omissions listed in the Schedules can ever amount to professional or other misconduct
  2. BThe Director (Discipline) may still inquire into a member's conduct under other circumstances, as the Schedules do not limit that powerCorrect
  3. CConduct outside the Schedules can be examined only by the Central Government
  4. DMisconduct is defined only by the Companies Act, 2013 and not by the Company Secretaries Act, 1980

Explanation

Section 22 provides that misconduct includes any act or omission in the Schedules, but this does not limit or abridge the Director (Discipline)'s power under section 21(1) to inquire into a member's conduct under other circumstances. The option saying only Schedule acts count ignores that saving clause.

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