Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

Three members of the Institute, all holding certificates of practice, form a partnership and trade as 'Iyer Sharma & Co., Company Secretaries'. One partner also adds 'MBA' after his name on the letterhead. Another person, Mr. Das, who is not a member, uses the letters F.C.S. after his name. Which statement is correct?

The firm name and the MBA addition are lawful under the proviso to section 7, since all partners are members in practice and other qualifications may be added. Mr. Das, a non-member using F.C.S., is liable under section 24(a)(iii).

  1. AThe firm name and the added qualification are permitted under section 7, while Mr. Das is liable under section 24Correct
  2. BThe firm name is prohibited because a firm cannot use the designation
  3. CThe added qualification MBA is prohibited because no other description can be added
  4. DMr. Das is protected by section 7 because it allows any person to use the letters

Explanation

The proviso to section 7 permits a member to add other qualifications and permits a firm whose partners are all members in practice to be known as Company Secretaries. Section 24(a)(iii) penalises a non-member using F.C.S. after his name. Section 7 protects only members and such firms.

Did you get it right without looking?

One question tells you little. A timed set on Legal Framework Governing Company Secretaries shows your real accuracy, how long you take and where you lose marks.

Practise Legal Framework Governing Company SecretariesFree diagnostic mock

More Legal Framework Governing Company Secretaries questions