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

Mahila Millets Producer Company Limited must appoint a whole-time secretary. The board shortlists Mr. Arun, a law graduate with ten years of experience in cooperative societies but not a member of ICSI, and Ms. Divya, who holds ICSI membership. Who is eligible for appointment?

Only Ms. Divya is eligible. Section 378X(2) bars appointment of any individual as whole-time secretary of a Producer Company unless that person holds membership of the Institute of Company Secretaries of India, and neither experience nor a members' resolution can replace that qualification.

  1. AOnly Ms. Divya, because the individual must possess membership of the Institute of Company Secretaries of IndiaCorrect
  2. BMr. Arun, because experience in cooperative societies is a valid substitute for ICSI membership
  3. CEither of them, if the members approve by special resolution
  4. DMr. Arun, provided he obtains a law degree approved by the Registrar

Explanation

Section 378X(2) states that no individual shall be appointed as whole-time secretary unless he possesses membership of ICSI. Experience or member approval cannot replace this. Mr. Arun is therefore ineligible and Ms. Divya is eligible.

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