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

Sundaram Foods Ltd, a listed company, appointed its own full-time employee, a qualified company secretary holding a certificate of practice only for personal use but not practising, to issue the secretarial audit report. Under section 204(1), what is the defect?

The report must be given by a company secretary in practice under section 204(1). An in-house employee who is a company secretary but not in practice does not satisfy the requirement, so the report would be defective.

  1. ANo defect, since any company secretary may sign
  2. BThe report must be given by a company secretary in practice, so an in-house employee not in practice does not meet the requirementCorrect
  3. CThe report must be given by a chartered accountant
  4. DThe report must be given by the Board chairperson

Explanation

Section 204(1) requires the report to be given by a company secretary in practice. An employee company secretary who is not in practice does not satisfy this. The other options name persons the section does not authorise.

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