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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

Orbit Retail Ltd, a listed company, has an in-house company secretary, Pooja, and has appointed a practising company secretary, Vivek, for the secretarial audit. Which statement correctly distinguishes their roles under the Act?

Pooja performs the Section 205 functions, such as reporting compliance to the Board, while Vivek, as a company secretary in practice, gives the secretarial audit report annexed to the Board's report under Section 204. The two roles are distinct.

  1. APooja's functions under Section 205 include reporting compliance to the Board; Vivek gives the secretarial audit report annexed to the Board's report under Section 204Correct
  2. BBoth give the secretarial audit report jointly under Section 205
  3. CVivek reports to the Board on compliance under Section 205, while Pooja gives the audit report under Section 204
  4. DPooja must be a company secretary in practice to perform Section 205 functions

Explanation

Section 205 sets the functions of the company secretary, including reporting to the Board on compliance. Section 204(1) requires a listed company to annex a secretarial audit report given by a company secretary in practice to the Board's report. The roles are therefore different, and the Board must explain any qualification in its report under Section 204(3).

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