Skip to content

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

Meera Iyer is an Associate member of the Institute of Company Secretaries of India and has never applied for a certificate of practice. She begins issuing compliance certificates to clients and tells them she is a Company Secretary in practice. Under the Company Secretaries Act, 1980, what is her position?

Meera is not entitled to practise because section 6(1) requires a certificate of practice from the Council. By representing herself as in practice without one, she is punishable under section 24(b). Membership alone confers no right to practise.

  1. AShe may practise, because membership of the Institute alone entitles her to practise
  2. BShe is not entitled to practise and is liable to punishment under section 24 for representing that she is in practice without a certificateCorrect
  3. CShe may practise in India but not elsewhere without a certificate
  4. DShe may practise if she pays the annual fee within the financial year after starting

Explanation

Section 6(1) bars a member from practising unless the Council has granted a certificate of practice. Section 24(b) punishes a member without a certificate who represents that she is in practice or practises. Membership alone is not enough, so the first option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Legal Framework Governing Company Secretaries shows your real accuracy, how long you take and where you lose marks.

Practise Legal Framework Governing Company SecretariesFree diagnostic mock

More Legal Framework Governing Company Secretaries questions