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

Meghdoot Textiles Ltd has a company secretary, Ms. Kavya Rao. At a board meeting, she informs the directors that the company delayed filing a particular return under the Companies Act and also missed a compliance under another applicable law. Which function listed in Section 205(1) is she performing?

Ms. Rao is performing the function of reporting to the Board about compliance with the Companies Act, its rules and other laws applicable to the company, which is the first function listed in Section 205(1). Approving accounts, appointing auditors or presiding are not company secretary functions under that section.

  1. AReporting to the Board about compliance with the Act, the rules and other laws applicable to the companyCorrect
  2. BApproving the financial statements on behalf of the Board
  3. CAppointing the statutory auditor of the company
  4. DReplacing the chairperson in presiding over the meeting

Explanation

Section 205(1)(a) makes it a function of the company secretary to report to the Board about compliance with the Companies Act, the rules and other laws applicable to the company. Informing the Board of missed filings under the Act and another law falls squarely within this. The other options are not functions listed in Section 205.

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