CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Processes through Secretarial Standards
Meridian Textiles Ltd's Board asks its company secretary, Ms. Kavya Rao, what her statutory role is regarding secretarial standards. Under section 205 of the Companies Act, 2013, which function falls squarely within her duties?
The company secretary's function under section 205 includes ensuring that the company complies with applicable secretarial standards. Secretarial audit is performed by an independent practising company secretary, and approving accounts or chairing meetings are not secretary functions listed in the section.
- ATo ensure that the company complies with the applicable secretarial standardsCorrect
- BTo personally approve the Board's annual financial statements on behalf of directors
- CTo replace the chairperson in presiding over Board meetings when absent
- DTo conduct the secretarial audit of the company every year
Explanation
Section 205(1)(b) lists ensuring compliance with applicable secretarial standards as a company secretary function. Secretarial audit under section 204 is done by a company secretary in practice, not the in-house secretary. Approving accounts and presiding over meetings are not listed functions.
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