CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Empowerment of the Company Secretary Profession
Greenfield Agro Producer Company Ltd has had an average annual turnover of Rs 7 crore in each of the last three consecutive financial years and has no whole-time secretary. The Board proposes to appoint its senior accountant, a commerce graduate who is not a member of ICSI, to the post. Under the Companies Act, 2013, what is the position?
A Producer Company with average annual turnover above Rs 5 crore in each of three consecutive years must have a whole-time secretary, and that person must be a member of ICSI. A non-member accountant cannot be appointed, whatever the Board resolves.
- AThe appointment is valid, as any graduate may be appointed whole-time secretary
- BThe appointment is not permissible, as only a member of ICSI can be appointed whole-time secretary of such a Producer CompanyCorrect
- CThe appointment is valid if the Board passes a resolution approving it
- DThe company need not appoint any secretary because Producer Companies are exempt
Explanation
Section 378X requires a Producer Company with average annual turnover above Rs 5 crore (or the prescribed amount) in each of three consecutive years to have a whole-time secretary. No individual can be appointed unless he is a member of ICSI. A Board resolution cannot override this, and the exemption option is wrong because the turnover threshold is crossed.
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.
More Empowerment of the Company Secretary Profession questions
- Under Section 205, the Explanation defines 'secretarial standards'. Which of the following correctly matches that definition?
- Nirmaan Learning Pvt Ltd starts awarding a 'Certified Corporate Secretarial Practitioner' certificate, suggesting competence in company secr…
- Rohan is convicted for the first time under Section 25 of the Company Secretaries Act, 1980 for using a name nearly resembling the Institute…
- Kaveri Power Ltd, a listed company, is preparing its Board's report. Its in-house company secretary, who is a whole-time employee, offers to…
- At a Board meeting of Sundaram Textiles Ltd, the directors ask the company secretary what her statutory function is regarding the Secretaria…
- Sahyadri Growers Producer Company Limited has failed to appoint a whole-time secretary for two years though required to. In penalty proceedi…