CMA Intermediate · Corporate Accounting and Auditing · Secretarial Audit
Section 204 of the Companies Act, 2013 casts a duty on the company in relation to the secretarial auditor. Which is that duty?
The company must give all assistance and facilities to the company secretary in practice for auditing its secretarial and related records. This is the express duty under section 204(2). The section does not require shareholder approval of remarks or a government-fixed fee.
- ATo give all assistance and facilities to the company secretary in practice for auditing the secretarial and related recordsCorrect
- BTo obtain approval of shareholders for every remark made by the secretarial auditor
- CTo pay the secretarial auditor a fee fixed by the Central Government
- DTo file the secretarial audit report with the Audit Committee instead of the Board
Explanation
Section 204(2) says it is the duty of the company to give all assistance and facilities to the company secretary in practice for auditing secretarial and related records. The other options describe obligations that the section does not contain.
Did you get it right without looking?
One question tells you little. A timed set on Secretarial Audit shows your real accuracy, how long you take and where you lose marks.
More Secretarial Audit questions
- Which statement about section 204 and the duties of the Board and managerial personnel is correct under section 205(2)?
- Under section 204, which statement about the company's duty towards the secretarial auditor is correct?
- Section 204 uses the expression 'a company belonging to other class of companies as may be prescribed'. Which reading of section 204(1) is c…
- Which statement about the duty to assist the secretarial auditor is correct under section 204 of the Companies Act, 2013?
- Under section 204 of the Companies Act, 2013, who is required to give the secretarial audit report that is annexed to the Board's report?
- A listed company's secretarial audit report contains an adverse observation about delayed filing of a statutory return. Under Section 204, w…