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

The board of Anand Textiles Ltd is about to hold a meeting at short notice. Its Company Secretary, Mr. Dev Malhotra, notes that the planned conduct of the meeting departs from the secretarial standards issued by ICSI and approved by the Central Government. Which statement reflects his duty under Section 205?

He must ensure the company complies with the applicable secretarial standards. Section 205(1)(b) places this function on the company secretary, and the Explanation defines secretarial standards as those issued by ICSI and approved by the Central Government.

  1. AHe must ensure the company complies with the applicable secretarial standardsCorrect
  2. BHis duty is limited to recording minutes after the meeting
  3. CSecretarial standards bind only the directors, not the company secretary
  4. DHe may ignore the standards because they are only guidelines under the Act

Explanation

Section 205(1)(b) makes it a function of the company secretary to ensure that the company complies with applicable secretarial standards. These are the standards issued by ICSI and approved by the Central Government. Limiting the role to minute-taking or treating the standards as optional contradicts this.

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