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

Nidhi Foods Ltd's Company Secretary is asked whether Section 205 limits his role to the two functions listed in clauses (a) and (b). Which answer is correct?

The role is not limited to two functions. Section 205(1) says the functions shall include reporting to the Board on compliance, ensuring compliance with secretarial standards, and discharging such other duties as may be prescribed under clause (c).

  1. ANo, the functions include reporting on compliance, ensuring compliance with secretarial standards, and such other duties as may be prescribedCorrect
  2. BYes, only those two functions are allowed and nothing else can be assigned
  3. CNo, but additional duties can be assigned only by the Registrar
  4. DYes, but he may take on other duties by a resolution of members alone

Explanation

Section 205(1) says the functions 'shall include' reporting on compliance and ensuring compliance with secretarial standards, and clause (c) adds such other duties as may be prescribed. The list is therefore not exhaustive, and the other options misstate how further duties arise.

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