CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework
Meridian Textiles Ltd's Company Secretary, Ms. Kavya Rao, notices that a Board meeting was convened with a notice period shorter than that prescribed by the applicable secretarial standard and without any valid justification. Under Section 205, which function of the company secretary is most directly engaged?
The company secretary's function of ensuring that the company complies with applicable secretarial standards, under Section 205(1)(b), is engaged. Board notice periods are governed by secretarial standards, so the secretary must ensure compliance. Secretarial audit and annual return certification belong to a practising company secretary.
- AGiving the secretarial audit report annexed to the Board's report
- BEnsuring that the company complies with the applicable secretarial standardsCorrect
- CSigning the annual return as a company secretary in practice
- DCertifying the annual return as stating the facts correctly
Explanation
Section 205(1)(b) makes it a function of the company secretary to ensure that the company complies with applicable secretarial standards. The secretarial audit report under Section 204 is given by a company secretary in practice, not by the in-house secretary, so that option is wrong. Annual return certification is also a practising professional's task.
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