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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

Kapoor & Associates is a firm of Company Secretaries in practice with its head office in Delhi and a second office in Jaipur. The Jaipur office is run by a clerk who is not a member of the Institute, and no exemption has been granted by the Council. What is the legal position?

The arrangement is non-compliant. Where a practising Company Secretary or firm has more than one office in India, section 37(1) requires each office to be in the separate charge of a member of the Institute, unless the Council grants an exemption. A clerk cannot be in charge.

  1. ANo issue arises, because only the head office needs a member in charge
  2. BEach office must be in the separate charge of a member of the Institute, unless the Council exempts the firm, so the arrangement is non-compliantCorrect
  3. CThe arrangement is valid if the clerk has worked for five years
  4. DThe arrangement is valid if the firm informs the Council of the Jaipur office

Explanation

Section 37(1) requires each office of a practising Company Secretary or firm with more than one office in India to be in the separate charge of a member of the Institute, unless the Council exempts in suitable cases. Informing the Council under 37(2) is a separate duty and does not cure the lack of a member in charge.

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